FORM 6-K
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of August, 2004
Commission File Number: 001-12440
ENERSIS S.A.
Santa Rosa 76
Santiago, Chile
Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F:
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes [ ] No [X]
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes [ ] No [X]
Indicate by check mark whether by furnishing the information
contained in this Form, the Registrant is also thereby furnishing the
information to the Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes [ ] No [X]
If “Yes” is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): N/A
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ENERSIS ANNOUNCES CONSOLIDATED RESULTS FOR THE FIRST HALF ENDED JUNE 30, 2004
Highlights for the Period
[All figures in Chilean Pesos]
Operating Income increased 12.2%, reaching $330,638 million.
Operating Revenues increased 12.9% or $163,259 million.
Non Operating Income improved 26.2%, from a loss of $ 218,239 down to a loss of $160,959 million.
Net Financial Income (Expenses) improved by $18,515 million, or 10.9% primarily due to lower indebtedness.
Physical sales in the generation business increased by 6.4% from 24,638 GWh to 26,223 GWh.
Physical sales in the distribution business increased by 5.5% from 24,479 GWh to 25,827 GWh. This trend in sales mainly explained by a higher consumption of electricity related to a recovered economic activity.
Our clients base increased in 415,340 new clients, which is equivalent to add a new mid size distribution company in one year.
Labor productivity increased by 6.4%, from 1,407 to 1,497 clients per employee.
- Net Income reached a profit of $13,774 million. This means a reduction of $26,350 million from the same period 2003. It is important to consider that profits as of June 2003 considered profits on the sale of Rio Maipo, Canutillar and Infraestructura 2000. Additionally, this decrease in profits was related to higher Income Tax, higher Minority Interest and lower Negative Goodwill Amortization.
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Table of Contents
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General Information
( Santiago , Chile , July 28, 2004) Enersis (NYSE: ENI), announced today consolidated financial results for the first half, ended June 30, 2004. All figures are in both, US $ and Ch$, and in accordance to Chilean Generally Accepted Accounting Principles (GAAP) as shown in the standardized form required by Chilean authorities (FECU). Variations refer to June 30, 2003, and figures have been adjusted by the CPI variation between both periods, equal to 0.6%.
For the purpose of converting Chilean pesos (Ch$) into US dollars (US$), we have used the exchange rate prevailing as of June 30, 2004, equal to US$ 1 = Ch$ 636.30, which compared to the exchange rate of US$ 1 = Ch$ 699.12, represents a Chilean peso appreciation of 9.0%.
The consolidation includes the following investment vehicles and companies,
a) In Chile : Endesa Chile (NYSE: EOC), Chilectra, Synapsis, CAM Ltd. and Inm. Manso de Velasco.
b) Outside Chile: Distrilima (Peru), Cerj and Investluz (Brazil), Edesur (Argentina), Luz de Bogotá (Colombia) and Enersis Internacional.
In the following pages you will find a detailed analysis of Financial Statements, explanation for most of variations, and comments about the main items of Income Statement and Cash Flow Statement compared to the information booked as of June 30, 2003.
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Simplified Organizational Structure
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Market Information
Equity Market
The recovery in demand for electricity in the majority of the areas under concession is reflected in a sustained growth in the liquidity of the Enersis shares, both on the local market and on the New York Stock Exchange through the ADRs.
The improved liquidity mentioned above also explains why it is our shares that reflect the greatest sensitivity of the decisions of investors in the face of market uncertainty. Thus, for example, when investors perceive an opportunity that motivate them to increase their regional or local exposure, they demand instruments like our shares that have the attribute of liquidity. It is worth mentioning, that since January 2004, Enersis local stock represents 22.4% of the IPSA Index, being the largest stock in this national index.
On the last 12 months, the stock price has raised over 7.5%, from Ch$69.75 to Ch$74.50.
Source: Bloomberg
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On the last 12 months, the ADR price has raised over 21%, from US$ 4.94 to US$ 5.83, compared with the 10% variation of the Dow Jones for the same period.
On the last 12 months, the Enersis unit price has raised almost 10%, from € 4.42 to € 4.80.
Source: Bloomberg
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Market Perception
The latest research published on Enersis shows the following target prices for the ADR.
Table 1
Publication Date | Company | Main Analyst | Target Price US$ (*) | Recommendation |
July 20, 2004 | Larrain Vial | Jorge Astaburuaga | 6.40 | Market Weight |
June 28, 2004 | Bear Stearns | Rowe Michels | 8.30 | Peer Perform |
June 01, 2004 | Credit Suisse | Emerson Leite | 8.00 | Outperform |
May 03, 2004 | Raymond James | Ricardo Cavanagh | 8.00 | Buy |
April 30, 2004 | UBS | Gustavo Gattass | 5.55 | Reduce |
April 29, 2004 | ING | Ricardo Fernandez | 11.50 | Strong Buy |
April 29, 2004 | Merrill Lynch | Frank McGann | 8.80 | Buy |
April 29, 2004 | BBVA | Mariela Iturriaga | 6.71 | Hold |
ADR average target price (US$) | 7.91 | |||
Debt Market
The following chart suggests that the risk perception of the bondholders has improved after the uncertainty produced by the gas crisis abated, returning to levels similar to those observed towards the end of 2003. This reflects the confidence of the holders of this debt in Enersis' capacity to pay, in time and form, the commitments assumed.
Enersis Yankee Bonds
% of Par Value
Source: Bloomberg
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Risk Rating Classification
International risk rating classification:
Standard & Poor's: | BBB- / Stable |
Fitch: | BBB- / Stable |
Moody's: | Ba2 / Stable |
Local risk rating classification:
Feller Rate: | A+ / Stable |
Fitch: | A / Stable |
Humphrey's: | BBB / Stable |
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Consolidated Income Statement
Under Chilean GAAP, million Ch$
Table 2
CONS. INCOME STATEMENT - (million Ch$) | 6M 04 | 6M 03 | Var 04-03 | Chg % |
Revenues from Generation | 536,991 | 476,350 | 60,641 | 12.7% |
Revenues from Distribution | 971,017 | 867,138 | 103,879 | 12.0% |
Revenues from Other Businesses | 78,464 | 84,350 | (5,886) | (7.0%) |
Consolidation Adjustments | (158,016) | (162,641) | 4,625 | 2.8% |
Operating Revenues | 1,428,456 | 1,265,197 | 163,259 | 12.9% |
Op. Costs from Generation | (325,123) | (280,726) | (44,397) | (15.8%) |
Op. Costs from Distribution | (760,770) | (683,914) | (76,856) | (11.2%) |
Op.Costs from Other Businesses | (62,114) | (64,462) | 2,348 | 3.6% |
Consolidation Adjustments | 145,074 | 148,949 | (3,875) | (2.6%) |
Operating Costs | (1,002,933) | (880,153) | (122,780) | (13.9%) |
Operating Margin | 425,523 | 385,044 | 40,479 | 10.5% |
SG&A from Generation | (22,367) | (15,390) | (6,977) | (45.3%) |
SG&A from Distribution | (71,507) | (73,203) | 1,696 | 2.3% |
SG&A from Other Businesses | (15,065) | (15,269) | 204 | 1.3% |
Consolidation Adjustments | 14,054 | 13,605 | 449 | 3.3% |
Selling and Administrative Expenses | (94,885) | (90,257) | (4,628) | (5.1%) |
Operating Income | 330,638 | 294,787 | 35,851 | 12.2% |
Interest Income | 35,820 | 38,648 | (2,828) | (7.3%) |
Interest Expense | (186,940) | (208,283) | 21,343 | 10.2% |
Net Financial Income (Expenses) | (151,120) | (169,635) | 18,515 | 10.9% |
Equity Gains from Related Companies | 16,097 | 20,365 | (4,268) | (21.0%) |
Equity Losses from Related Companies | (2) | (279) | 277 | 99.3% |
Net Income from Related Companies | 16,095 | 20,086 | (3,991) | (19.9%) |
Other Non Operating Income | 50,915 | 133,989 | (83,074) | (62.0%) |
Other Non Operating Expenses | (63,520) | (175,852) | 112,332 | 63.9% |
Net other Non Operating Income (Expense) | (12,605) | (41,864) | 29,259 | 69.9% |
Price Level Restatement | 1,749 | (8,101) | 9,850 | 121.6% |
Foreign Exchange Effect | 11,850 | 8,359 | 3,491 | 41.8% |
Net of Monetary Exposure | 13,599 | 258 | 13,341 | - |
Positive Goodwill Amortization | (26,928) | (27,084) | 156 | 0.6% |
Non Operating Income | (160,959) | (218,239) | 57,280 | 26.2% |
Net Inc b. Taxes, Min Int and Neg Goodwill Amort. | 169,679 | 76,548 | 93,131 | 121.7% |
Extraordinary Items | - | - | - | - |
Income Tax | (112,164) | (57,849) | (54,315) | (93.9%) |
Minority Interest | (53,195) | (22,727) | (30,468) | (134.1%) |
Negative Goodwill Amortization | 9,454 | 44,152 | (34,698) | (78.6%) |
NET INCOME | 13,774 | 40,124 | (26,350) | (65.7%) |
R.A.I.I.D.A.I.E. | 606,763 | 590,091 | 16,672 | 2.8% |
RAIIDAIE: Net income before taxes, interest, depreciation, amortization and extraordinary items (as defined by local SEC).
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Under Chilean GAAP, thousand US$
Table 2.1
CONS. INCOME STATEMENT - (thousand US$) | 6M 04 | 6M 03 | Var 04-03 | Chg % |
Revenues from Generation | 843,927 | 748,625 | 95,302 | 12.7% |
Revenues from Distribution | 1,526,036 | 1,362,782 | 163,254 | 12.0% |
Revenues from Other Businesses | 123,313 | 132,563 | (9,250) | (7.0%) |
Consolidation Adjustments | (248,336) | (255,604) | 7,268 | 2.8% |
Operating Revenues | 2,244,941 | 1,988,366 | 256,575 | 12.9% |
Op. Costs from Generation | (510,959) | (441,185) | (69,774) | (15.8%) |
Op. Costs from Distribution | (1,195,615) | (1,074,829) | (120,786) | (11.2%) |
Op.Costs from Other Businesses | (97,617) | (101,308) | 3,691 | 3.6% |
Consolidation Adjustments | 227,996 | 234,086 | (6,090) | (2.6%) |
Operating Costs | (1,576,195) | (1,383,236) | (192,959) | (13.9%) |
Operating Margin | 668,746 | 605,130 | 63,616 | 10.5% |
SG&A from Generation | (35,152) | (24,187) | (10,965) | (45.3%) |
SG&A from Distribution | (112,379) | (115,045) | 2,666 | 2.3% |
SG&A from Other Businesses | (23,676) | (23,997) | 321 | 1.3% |
Consolidation Adjustments | 22,087 | 21,381 | 706 | 3.3% |
Selling and Administrative Expenses | (149,120) | (141,847) | (7,273) | (5.1%) |
Operating Income | 519,626 | 463,283 | 56,343 | 12.2% |
Interest Income | 56,294 | 60,738 | (4,444) | (7.3%) |
Interest Expense | (293,793) | (327,334) | 33,541 | 10.2% |
Net Financial Income (Expenses) | (237,498) | (266,596) | 29,098 | 10.9% |
Equity Gains from Related Companies | 25,298 | 32,005 | (6,707) | (21.0%) |
Equity Losses from Related Companies | (3) | (438) | 435 | 99.3% |
Net Income from Related Companies | 25,295 | 31,567 | (6,272) | (19.9%) |
Other Non Operating Income | 80,017 | 210,575 | (130,558) | (62.0%) |
Other Non Operating Expenses | (99,827) | (276,367) | 176,540 | 63.9% |
Net other Non Operating Income (Expenses) | (19,810) | (65,793) | 45,983 | 69.9% |
Price Level Restatement | 2,748 | (12,731) | 15,479 | 121.6% |
Foreign Exchange Effect | 18,623 | 13,137 | 5,486 | 41.8% |
Net of Monetary Exposure | 21,372 | 406 | 20,966 | - |
Positive Goodwill Amortization | (42,320) | (42,565) | 245 | 0.6% |
Non Operating Income | (252,961) | (342,981) | 90,020 | 26.2% |
Net Inc b. Taxes, Min Int and Neg Goodwill Amort. | 266,665 | 120,302 | 146,363 | 121.7% |
Extraordinary Items | - | - | - | - |
Income Tax | (176,275) | (90,915) | (85,360) | (93.9%) |
Minority Interest | (83,600) | (35,717) | (47,883) | (134.1%) |
Negative Goodwill Amortization | 14,858 | 69,388 | (54,530) | (78.6%) |
NET INCOME | 21,647 | 63,058 | (41,411) | (65.7%) |
R.A.I.I.D.A.I.E. | 953,580 | 927,379 | 26,201 | 2.8% |
RAIIDAIE: Net income before taxes, interest, depreciation, amortization and extraordinary items (as defined by local SEC).
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Consolidated Income Statement Analysis
(As seen in the FECU)
Net Income
As of June 30, 2004, the Company registered a Net Income of $13.774 million which, compared to the $40.124 million as of the same date last year, reflects a decrease of $26.350 million. This variation is explained as follows:
Operating Income
Activities of Enersis are developed through subsidiaries in 5 different countries where the Company operates. Core business of the Company are Generation and Distribution of electricity.
Table 3
6M 04 | 6M 03 | |||||||
Million Ch$ | Operating Revenues | Operating Costs | SG&Amp;A | Operating Income | Operating Revenues | Operating Costs | SG&Amp;A | Operating Income |
Endesa S.A. | 547,592 | (334,000) | (22,889) | 190,703 | 488,341 | (290,513) | (15,911) | 181,917 |
Chilectra S.A. | 209,163 | (147,435) | (17,258) | 44,470 | 207,554 | (145,569) | (14,598) | 47,387 |
Edesur S.A. | 117,056 | (99,821) | (15,140) | 2,095 | 104,839 | (92,796) | (15,909) | (3,866) |
Distrilima (Edelnor) | 97,191 | (73,218) | (8,811) | 15,162 | 104,962 | (78,251) | (9,553) | 17,158 |
Cerj | 205,220 | (169,286) | (8,767) | 27,167 | 183,284 | (150,607) | (5,426) | 27,251 |
Investluz (Coelce) | 143,139 | (122,193) | (16,891) | 4,055 | 112,345 | (81,023) | (15,128) | 16,194 |
Luz de Bogotá (Codensa S.A.) | 199,248 | (148,816) | (4,639) | 45,793 | 154,153 | (135,667) | (12,584) | 5,902 |
CAM Ltda. | 42,120 | (35,353) | (2,871) | 3,896 | 43,261 | (34,111) | (3,394) | 5,756 |
Inmobiliaria Manso de Velasco Ltda. | 2,618 | (2,400) | (931) | (713) | 5,011 | (5,058) | (696) | (743) |
Synapsis Soluciones y Servicios IT Ltda. | 20,938 | (14,924) | (3,363) | 2,651 | 21,885 | (14,936) | (3,216) | 3,733 |
Enersis Holding and other investment vehicles | 2,187 | (561) | (7,379) | (5,753) | 2,203 | (570) | (7,446) | (5,813) |
Consolidation Adjustments | (158,016) | 145,074 | 14,054 | 1,112 | (162,641) | 148,948 | 13,604 | (89) |
Total Consolidation | 1,428,456 | (1,002,933) | (94,885) | 330,638 | 1,265,197 | (880,153) | (90,257) | 294,787 |
Table 3.1
6M 04 | 6M 03 | |||||||
Thousand US$ | Operating Revenues | Operating Costs | SG&Amp;A | Operating Income | Operating Revenues | Operating Costs | SG&Amp;A | Operating Income |
Endesa S.A. | 860,588 | (524,909) | (35,972) | 299,707 | 767,470 | (456,567) | (25,006) | 285,898 |
Chilectra S.A. | 328,718 | (231,708) | (27,123) | 69,887 | 326,188 | (228,775) | (22,943) | 74,471 |
Edesur S.A. | 183,963 | (156,877) | (23,794) | 3,292 | 164,764 | (145,837) | (25,003) | (6,076) |
Distrilima (Edelnor) | 152,745 | (115,069) | (13,847) | 23,829 | 164,956 | (122,979) | (15,014) | 26,964 |
Cerj | 322,521 | (266,047) | (13,778) | 42,696 | 288,046 | (236,691) | (8,528) | 42,827 |
Investluz (Coelce) | 224,955 | (192,037) | (26,546) | 6,372 | 176,560 | (127,335) | (23,774) | 25,450 |
Luz de Bogotá (Codensa S.A.) | 313,135 | (233,878) | (7,291) | 71,966 | 242,265 | (213,212) | (19,777) | 9,277 |
CAM Ltda. | 66,195 | (55,560) | (4,512) | 6,124 | 67,989 | (53,608) | (5,334) | 9,047 |
Inmobiliaria Manso de Velasco Ltda. | 4,115 | (3,772) | (1,463) | (1,120) | 7,875 | (7,949) | (1,093) | (1,167) |
Synapsis Soluciones y Servicios IT Ltda. | 32,906 | (23,454) | (5,286) | 4,167 | 34,394 | (23,473) | (5,054) | 5,867 |
Enersis Holding and other investment vehicles | 3,438 | (881) | (11,597) | (9,041) | 3,462 | (896) | (11,702) | (9,136) |
Consolidation Adjustments | (248,335) | 227,997 | 22,087 | 1,748 | (255,604) | 234,085 | 21,380 | (139) |
Total Consolidation | 2,244,942 | (1,576,194) | (149,122) | 519,627 | 1,988,366 | (1,383,235) | (141,847) | 463,284 |
The company's Operating Income for the first half of this year amounted to $330.638 million, an increase of $35.851 million or 12.2% with respect to June, 2003. This increase is due principally to the important rise in the Operating Income of the Distribution and Generating subsidiaries in Colombia and Argentina ..
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If we segregate the effects of the revaluation of the Chilean Peso against the US Dollar, rising in value by 9.0% between June 30, 2003 and June 30, 2004, from $699.12 to $636.30, respectively, the increase in the Operating Income would be 18.2%.
Non Operating Income
The non-operating result of the company improved by 26.2%, or $57,280 million from a loss of $218,239 million as of June 30, 2003 to a loss of $160,959 million as of June 30 of this year.
Financial expenses net of financial income decreased by 10.9% or $18,515 million, from a net expense of $169,635 million in June 2003 to a net expense of $151,120 million this year. The decrease in expenses is mainly due to a reduction in debt.
The Income from investments in related companies reflect a decrease of 19.9% or $3,991 million from a profit of $20,086 million in the first half of 2003 to a profit of $16,095 million as of June 2004. This was due fundamentally to the lower results registered in the related companies, CIEN and Gasatacama; in CIEN due to the impact of the renegotiation of the contracts with Copel and in Gasatacama, due to the higher costs of utilizing alternative fuels in view of the restrictions on gas from Argentina.
The amortization of positive goodwill remained at the same level and did not have any significant variations. This amounted to $26,928 million, a reduction of 0.6%. The reduced amortization is due to the effect of the exchange rate of the Chilean Peso on the foreign subsidiaries controlled in US Dollars and have a positive goodwill.
Other net non-operating income and expenses rose by $29,259 million from a loss of $41,864 million in June 2003 to a loss of $12,605 million in June 2004. The principal reasons that explain this variation in results are the following:
Reduction of $68,832 million in losses caused by the adjustment on the conversion to Chilean norms following the application of Technical Bulletin Nº 64, principally on the subsidiaries in Brazil and Argentina. This was mainly due to the revaluation of the Brazilian Real and the Argentine Peso against the US Dollar during the year 2003 and its impact on the structure of monetary assets and liabilities.
Reduction of $22,474 million in provisions on contingencies and lawsuits.
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Reduction of $10,232 million in Pension Plans and UFIR Brazil Taxes.
Indemnity for $8,111 million received by Edesur from Alstom-Pirelli on the case involving the Azopardo sub-station.
Reduction of $5,089 million in losses from adjustments to PEV (equity income) of investments in related companies.
Increase of $2,149 million in net income from recalculation of CDEC-SING power.
The above was partially compensated by the following:
Reduction of $74,270 million in profits from sales of investments.
Increase of $4,908 million in Heritage Tax in Colombia that corresponds to 1.2% applicable to all companies based in Colombia.
Price-level restatement and exchange differences show an increase of $13,341 million with respect to the first half of the previous year, rising from a profit of $258 million as of June 30, 2003 to a profit of $13,599 million in this semester. This is principally the result of the effects of the nominal devaluation of 7.2% of the Chilean Peso against the US Dollar as of June 30, 2004 as compared to the revaluation of 2.7% of the Chilean Peso as of the same date of the previous year. These effects were compensated to a large degree by exchange insurance maintained by the company.
Income Tax and Deferred Taxes. As of June 30, 2004 the company shows an increase of $54,315 million with respect to the same period of the previous year, rising from $57,849 million ($77,106 million in Income Tax Expenses and $19,257 in profits on deferred taxes) in June, 2003 to an expense of $112,164 million ($65,516 million in Income Tax Expenses and $46,648 million in losses on deferred taxes) in this semester.
Miliion Ch$ | Jun-03 | Jun-04 | Var 04-03 |
Income Tax | (77,106) | (65,516) | 11,59 |
Deferred Income Tax | 19,25 | (46,648) | (65,905) |
Total | (57,849) | (112,164) | (54,315) |
Thousand US$ | Jun-03 | Jun-04 | Var 04-03 |
Income Tax | (121,179) | (102,963) | 18,216 |
Deferred Income | 30,264 | (73,312) | (103,576) |
Total | (90.915) | (176.275) | (85.360) |
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The $11,590 million of lower income tax are related to the fact that in June 03, Enersis recognized the effect on the sale of Río Maipo, Canutillar and Infraestructura 2000. Taxes derived from that sales amounted to $ 34,324 million. This figure, was partially compensated by an increase in income tax on the improved taxable results of Chilectra by $5,827 million, and the subsidiaries Codensa and Emgesa in Colombia by $11,373 and $3,963 million, respectively.
With regard to deferred taxes, these show a negative variation of $65,905 million, explained mainly by the generating subsidiaries in Argentina ( Central Costanera and Chocón) for $16,516 and $20,983 million, respectively. This is the outcome of the fact that in June, 2003 the company registered for the first time the effects of tax losses (mainly the devaluation of the Argentine Peso) that the company had as of that date ($15,172 and $14,668 million in profits on deferred taxes). However, as a result of the recovery in the rate of exchange and the improved results of the companies, the tax loss has reduced, reflecting as of June 2004, losses on the reversal of deferred taxes of $1,337 and $6,315 million, respectively. Other significant effects were the increase of $11,017 million in expenses from deferred taxes in Enersis and $8,508 million in Endesa Chile.
The amortization on negative goodwill amounted to $9,454 million which, when compared to the first half of 2003, presents a reduction of $34,698 million. The reduced amortization is explained by the acceleration of the greater added value following the investment in CERJ in January 2003, registered as of June 2003.
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Evolution Of Key Financial Ratios
Table 4
Indicator | Unit | 6M 04 | 6M 03 | Var 04-03 | Chg% |
Liquidity | Times | 1.28 | 1.20 | 0.08 | 6.7% |
Acid ratio test * | Times | 1.18 | 1.15 | 0.03 | 2.6% |
Working capital | million Ch$ | 308,978 | 319,342 | (10,364) | (3.2%) |
Working capital | thousands US$ | 485,585 | 501,873 | (16,288) | (3.2%) |
Leverage ** | Times | 0.82 | 0.99 | (0.17) | 17.2% |
Short-term debt | % | 0.22 | 0.25 | (0.03) | (12.0%) |
Long-term debt | % | 0.78 | 0.75 | 0.03 | 4.0% |
Interest Coverage*** | Times | 3.24 | 2.83 | 0.41 | 14.5% |
EBITDA**** | th. US$ | 850,258 | 834,670 | 15,588 | 1.9% |
ROE | % | 0.52% | 1.59% | (1.07%) | (67.3%) |
ROA | % | 0.12% | 0.31% | (0.19%) | (61.3%) |
* Current assets net of inventories and pre-paid expenses
** Using the ratio = Total debt / (equity + minority interest)
***EBITDAEI/Interest expenses = (Earnings before taxes+Fin exp+Net non operating income+depreciation+Positive Goodwill)/Interest expenses
****EBITDA: Operating Income+Depreciation+Amortization
The liquidity ratio as of June 30, 2004 was 1.28, a 6.7% improvement over the ratio as of the same date in the previous year. This reflects a continuing improvement in the financial situation of the company.
The leverage ratio as at June 30, 2004 was 0.82 times, reflecting an improvement of 17.2% with respect to the same period of 2003. This reduction is due principally to the increase in capital during the second preferential option period in December 2003 and to the effect of the exchange rate, given that a large part of the debt is indexed to the dollar.
On the other hand, return on equity was 0.52%. As of the same date in the previous year, this was 1.59%. This reduction in yield is produced by the fall in profits with respect to the previous year and to an increase in equity as of June 2004.
Return on assets rose from 0.31% in June 2003 to 0.12% in June 2004. This is basically due to the results for the period and the reduction in total assets.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 16 |
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Consolidated Balance Sheet
Assets Under Chilean GAAP, Million Ch$
Table 5
ASSETS - (million Ch$) | 6M 04 | 6M 03 | Var 04-03 | Chg % |
CURRENT ASSETS | ||||
Cash | 55,062 | 365,440 | (310,378) | (84.9%) |
Time deposits | 319,938 | 345,742 | (25,804) | (7.5%) |
Marketable securities | 13,655 | 12,898 | 757 | 5.9% |
Accounts receivable | 532,824 | 525,941 | 6,883 | 1.3% |
Notes receivable | 3,314 | 5,046 | (1,732) | (34.3%) |
Other accounts receivable | 45,451 | 105,490 | (60,039) | (56.9%) |
Amounts due from related companies | 146,342 | 193,438 | (47,096) | (24.3%) |
Inventories | 74,255 | 58,528 | 15,727 | 26.9% |
Income taxes to be recovered | 92,715 | 76,735 | 15,980 | 20.8% |
Prepaid expenses | 34,438 | 20,098 | 14,340 | 71.3% |
Deferred income taxes | 56,970 | 50,124 | 6,846 | 13.7% |
Other current assets | 25,135 | 114,448 | (89,313) | (78.0%) |
Net of long-term leasing contracts | - | - | - | - |
Net of assets for leasing | - | - | - | - |
Total currrent assets | 1,400,099 | 1,873,927 | (473,828) | (25.3%) |
PROPERTY, PLANT AND EQUIPMENT | ||||
Property | 121,342 | 127,431 | (6,089) | (4.8%) |
Buildings and infraestructure | 10,671,817 | 11,134,639 | (462,822) | (4.2%) |
Plant and equipment | 1,897,252 | 2,060,865 | (163,613) | (7.9%) |
Other assets | 335,745 | 440,030 | (104,285) | (23.7%) |
Technical re-appraisal | 661,961 | 728,339 | (66,378) | (9.1%) |
Sub - Total | 13,688,119 | 14,491,304 | (803,185) | (5.5%) |
Accumulated depreciation | (5,251,006) | (5,200,645) | (50,361) | (1.0%) |
Total property, plant and equipment | 8,437,113 | 9,290,659 | (853,546) | (9.2%) |
OTHER ASSETS | ||||
Investments in related companies | 202,060 | 207,861 | (5,801) | (2.8%) |
Investments in other companies | 142,854 | 157,765 | (14,911) | (9.5%) |
Positive goodwill | 764,017 | 820,537 | (56,520) | (6.9%) |
Negative goodwill | (75,443) | (83,724) | 8,281 | 9.9% |
Long-term receivables | 111,867 | 154,556 | (42,689) | (27.6%) |
Amounts due from related companies | 717 | 3,061 | (2,344) | (76.6%) |
Deferred income taxes | - | - | - | - |
Intangibles | 86,537 | 89,484 | (2,947) | (3.3%) |
Accumulated amortization | (44,756) | (42,312) | (2,444) | (5.8%) |
Others | 178,498 | 272,332 | (93,834) | (34.5%) |
Net of long-term leasing contracts | - | - | - | - |
Total other assets | 1,366,351 | 1,579,562 | (213,211) | (13.5%) |
TOTAL ASSETS | 11,203,563 | 12,744,148 | (1,540,585) | (12.1%) |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 17 |
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Assets Under Chilean GAAP, Thousand US $
Table 5.1
ASSETS - (thousand US$) | 6M 04 | 6M 03 | Var 04-03 | Chg % |
CURRENT ASSETS | ||||
Cash | 86,535 | 574,321 | (487,786) | (84.9%) |
Time deposits | 502,810 | 543,362 | (40,552) | (7.5%) |
Marketable securities | 21,460 | 20,270 | 1,190 | 0 |
Accounts receivable | 837,378 | 826,561 | 10,817 | 1.3% |
Notes receivable | 5,209 | 7,929 | (2,720) | (34.3%) |
Other accounts receivable | 71,431 | 165,786 | (94,355) | (56.9%) |
Amounts due from related companies | 229,989 | 304,005 | (74,016) | (24.3%) |
Inventories | 116,698 | 91,981 | 24,717 | 26.9% |
Income taxes to be recovered | 145,709 | 120,596 | 25,113 | 20.8% |
Prepaid expenses | 54,123 | 31,586 | 22,537 | 71.3% |
Deferred income taxes | 89,533 | 78,775 | 10,758 | 13.7% |
Other current assets | 39,502 | 179,865 | (140,363) | (78.0%) |
Net of long-term leasing contracts | - | - | - | - |
Net of assets for leasing | - | - | - | - |
| ||||
Total currrent assets | 2,200,376 | 2,945,038 | (744,662) | (25.3%) |
PROPERTY, PLANT AND EQUIPMENT | ||||
Property | 190,700 | 200,269 | (9,569) | (4.8%) |
Buildings and infraestructure | 16,771,675 | 17,499,040 | (727,365) | (4.2%) |
Plant and equipment | 2,981,695 | 3,238,826 | (257,131) | (7.9%) |
Other assets | 527,653 | 691,545 | (163,892) | (23.7%) |
Technical re-appraisal | 1,040,329 | 1,144,648 | (104,319) | (9.1%) |
Sub - Total | 21,512,052 | 22,774,326 | (1,262,274) | (5.5%) |
Accumulated depreciation | (8,252,406) | (8,173,259) | (79,147) | (1.0%) |
| ||||
Total property, plant and equipment | 13,259,646 | 14,601,067 | (1,341,421) | (9.2%) |
| ||||
OTHER ASSETS | ||||
Investments in related companies | 317,555 | 326,672 | (9,117) | (2.8%) |
Investments in other companies | 224,507 | 247,942 | (23,435) | (9.5%) |
Positive goodwill | 1,200,718 | 1,289,543 | (88,825) | (6.9%) |
Negative goodwill | (118,565) | (131,580) | 13,015 | 9.9% |
Long-term receivables | 175,809 | 242,899 | (67,090) | (27.6%) |
Amounts due from related companies | 1,127 | 4,811 | (3,684) | (76.6%) |
Deferred income taxes | - | - | - | - |
Intangibles | 136,000 | 140,632 | (4,632) | (3.3%) |
Accumulated amortization | (70,338) | (66,496) | (3,842) | (5.8%) |
Others | 280,525 | 427,993 | (147,468) | (34.5%) |
Net of long-term leasing contracts | - | - | - | - |
| ||||
Total other assets | 2,147,337 | 2,482,417 | (335,080) | (13.5%) |
TOTAL ASSETS | 17,607,359 | 20,028,522 | (2,421,163) | (12.1%) |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 18 |
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Liabilities and Shareholders Equity Under Chilean GAAP, Million Ch$
Table 6
LIABILITIES - (million Ch$) | 6M 04 | 6M 03 | Var 04-03 | Chg % |
CURRENT LIABILITIES | ||||
Due to banks and financial institutions (short-term) | 237,883 | 327,574 | (89,691) | 27.4% |
Due to banks and fin. institutions (portion of long term) | 143,144 | 160,325 | (17,181) | 10.7% |
Commercial paper equivalent | - | 6,311 | (6,311) | 100.0% |
Bonds payable (short-term) | 90,316 | 403,793 | (313,477) | 77.6% |
Long-term liabilities maturing before one year | 24,431 | 35,466 | (11,035) | 31.1% |
Dividends payable | 22,909 | 6,212 | 16,697 | - |
Accounts payable | 217,910 | 226,953 | (9,043) | 4.0% |
Notes payable | 22,419 | 31,000 | (8,581) | 27.7% |
Miscellaneous payables | 43,041 | 95,395 | (52,354) | 54.9% |
Accounts payable to related companies | 91,648 | 15,327 | 76,321 | - |
Provisions | 44,443 | 77,883 | (33,440) | 42.9% |
Withholdings | 60,485 | 69,357 | (8,872) | 12.8% |
Income tax | 32,575 | 41,899 | (9,324) | 22.3% |
Anticipated income | 9,369 | 14,748 | (5,379) | 36.5% |
Deferred taxes | - | - | - | - |
Reinbursable financial contribution | 1,897 | 2,830 | (933) | 33.0% |
Other current liabilities | 48,652 | 53,972 | (5,320) | 9.9% |
Total current liabilities | 1,091,121 | 1,569,045 | (477,924) | 30.5% |
LONG-TERM LIABILITIES | ||||
Due to banks and financial institutions | 754,648 | 2,146,124 | (1,391,476) | 64.8% |
Bonds payable | 2,588,826 | 1,987,133 | 601,693 | (30.3%) |
Notes payable | 160,161 | 180,380 | (20,219) | 11.2% |
Miscellaneous payables | 25,670 | 20,646 | 5,024 | (24.3%) |
Amounts payable to related companies | - | 901 | (901) | 100.0% |
Provisions | 328,356 | 326,859 | 1,497 | (0.5%) |
Deferred taxes | 56,759 | 29,814 | 26,945 | (90.4%) |
Reinbursable financial contribution | 7,535 | 11,722 | (4,187) | 35.7% |
Other long-term liabilities | 35,602 | 74,866 | (39,264) | 52.4% |
0 | ||||
Total long-term liabilities | 3,957,556 | 4,778,445 | (820,889) | 17.2% |
Minority interest | 3,517,221 | 3,870,064 | (352,843) | (9.1%) |
SHAREHOLDERS´ EQUITY | ||||
Paid-in capital, no par value | 2,227,711 | 2,099,820 | 127,891 | 6.1% |
Reserve to equity revaluation | 17,822 | 8,313 | 9,509 | 114.4% |
Additional paid-in capital-share premium | 160,027 | 166,557 | (6,530) | (3.9%) |
Other reserves | 29,990 | 35,603 | (5,613) | (15.8%) |
Total capital and reserves | 2,435,550 | 2,310,292 | 125,258 | 5.4% |
Future dividends reserve | - | - | - | - |
Retained earnings | 190,970 | 177,253 | 13,717 | 7.7% |
Retained losses | - | - | - | - |
Net income | 13,774 | 40,124 | (26,350) | (65.7%) |
Interim dividends | - | - | - | - |
Development subsidaries deficits | (2,629) | (1,075) | (1,554) | 144.6% |
Total retained earnings | 202,114 | 216,302 | (14,188) | (6.6%) |
Total shareholder´s equity | 2,637,665 | 2,526,594 | 111,071 | 4.4% |
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 11,203,563 | 12,744,148 | (1,540,585) | (12.1%) |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 19 |
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Liabilities and Shareholders Equity Under Chilean GAAP, Thousand US $
Table 6.1
LIABILITIES - (thousand US$) | 6M 04 | 6M 03 | Var 04-03 | Chg % |
CURRENT LIABILITIES | ||||
Due to banks and financial institutions (short-term) | 373,854 | 514,810 | (140,956) | 27.4% |
Due to banks and fin. institutions (portion of long term) | 224,964 | 251,964 | (27,000) | 10.7% |
Commercial paper equivalent | - | 9,918 | (9,918) | 100.0% |
Bonds payable (short-term) | 141,939 | 634,595 | (492,656) | 77.6% |
Long-term liabilities maturing before one year | 38,396 | 55,738 | (17,342) | 31.1% |
Dividends payable | 36,003 | 9,763 | 26,240 | - |
Accounts payable | 342,464 | 356,676 | (14,212) | 4.0% |
Notes payable | 35,233 | 48,719 | (13,486) | 27.7% |
Miscellaneous payables | 67,642 | 149,921 | (82,279) | 54.9% |
Accounts payable to related companies | 144,032 | 24,088 | 119,944 | - |
Provisions | 69,845 | 122,399 | (52,554) | 42.9% |
Withholdings | 95,058 | 109,001 | (13,943) | 12.8% |
Income tax | 51,194 | 65,848 | (14,654) | 22.3% |
Anticipated income | 14,724 | 23,178 | (8,454) | 36.5% |
Deferred taxes | - | - | - | - |
Reinbursable financial contribution | 2,982 | 4,448 | (1,466) | 33.0% |
Other current liabilities | 76,461 | 84,822 | (8,361) | 9.9% |
Total current liabilities | 1,714,790 | 2,465,888 | (751,098) | 30.5% |
LONG-TERM LIABILITIES | ||||
Due to banks and financial institutions | 1,185,993 | 3,372,818 | (2,186,825) | 64.8% |
Bonds payable | 4,068,562 | 3,122,951 | 945,611 | (30.3%) |
Notes payable | 251,706 | 283,482 | (31,776) | 11.2% |
Miscellaneous payables | 40,343 | 32,448 | 7,895 | (24.3%) |
Amounts payable to related companies | - | 1,416 | (1,416) | 100.0% |
Provisions | 516,040 | 513,687 | 2,353 | (0.5%) |
Deferred taxes | 89,201 | 46,855 | 42,346 | (90.4%) |
Reinbursable financial contribution | 11,842 | 18,422 | (6,580) | 35.7% |
Other long-term liabilities | 55,951 | 117,658 | (61,707) | 52.4% |
Total long-term liabilities | 6,219,638 | 7,509,736 | (1,290,098) | 17.2% |
Minority interest | 5,527,614 | 6,082,138 | (554,524) | (9.1%) |
SHAREHOLDERS´ EQUITY | ||||
Paid-in capital, no par value | 3,501,039 | 3,300,047 | 200,992 | 6.1% |
Reserve to equity revaluation | 28,008 | 13,064 | 14,944 | 114.4% |
Additional paid-in capital-share premium | 251,496 | 261,758 | (10,262) | (3.9%) |
Other reserves | 47,132 | 55,953 | (8,821) | (15.8%) |
Total capital and reserves | 3,827,676 | 3,630,822 | 196,854 | 5.4% |
Future dividends reserve | - | - | - | - |
Retained earnings | 300,125 | 278,568 | 21,557 | 7.7% |
Retained losses | - | - | - | - |
Net income | 21,647 | 63,058 | (41,411) | (65.7%) |
Interim dividends | - | - | - | - |
Development subsidaries deficits | (4,132) | (1,689) | (2,443) | 144.6% |
Total retained earnings | 317,640 | 339,937 | (22,297) | (6.6%) |
Total shareholder´s equity | 4,145,316 | 3,970,759 | 174,557 | 4.4% |
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY | 17,607,359 | 20,028,522 | (2,421,163) | (12.1%) |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 20 |
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Consolidated Balance Sheet Analysis
The Company's total assets reflect a decrease of $1,540,585 million with respect to the same period of the previous year. This is principally due to:
A decrease of $853,546 million, or 9.2% in Fixed Assets due principally to depreciation of one year (approximately $420,000 million) and to the effect of the exchange rate on the fixed assets of the foreign subsidiaries as a result of the methodology of carrying non-monetary assets in the subsidiaries established in unstable countries in historic US Dollars as required by Technical Bulletin Nº 64.
Current Assets show a fall of $473,828 million due principally to:
- The reduction of $310,378 million in cash and banks, explained mainly by the fact that as of June 2003, cash had been received in connection with the first period of preferential subscription in the capital increase process.
The reduction of $89,313 million in other current assets, explained principally by a reduction of $56,041 million in forward contracts, a reduction of $13,100 million in deferred expenses credits, a reduction of $8,560 million in investments in repurchase/sale agreements and a reduction of $7,414 in deposits on obligations.
The reduction of $60,038 million in sundry debtors due principally to the payment from OHL for $38,091 million for the sale of Infraestructura 2000 and $12,285 million less in advances in Codensa.
The reduction of $25,803 million in term deposits as a result of the decrease of $213,354 million in deposits in Enersis held in June 2003, partially compensated by increases in deposits of $80,510 and $98,266 million from the generation of cash in the Colombian companies, Emgesa and Luz de Bogotá, respectively.
The reduction of $47,096 million in short term accounts receivable from related companies, explained basically by the receipt of payment of the Atacama Finance loan for $22,674 million and by the effect of the exchange rate on the loan in dollars.
The increase of $15,980 million in Tax Receivable principally for Elesur for $46,429 million, partially compensated by reductions of $16,223 million in Coelce, $7,529 million in Enersis, $7,561 million in Endesa and $6,803 million in Chilectra.
Other Long Term Assets show a decrease of $213,211 million, explained mainly as follows:
A reduction of $56,520 million in the positive goodwill that corresponds mainly to the amortization of a whole year of approximately $53,000 million. The difference is the result of the exchange rate in Chile , for that positive goodwill in the subsidiaries controlled in dollars.
A reduction of $93,834 million in other long term assets, due to the decrease of $66,710 million in deferred commissions and expenses on loans, reduction of $34,987 million in the effects of the valuation to a Fair Price of the derivatives and a reduction of $10,069 million in post-retirement benefits, compensated in part by an increase of $8,747 million in the expenses and discounts on bonds.
A reduction of $42,689 million in long term debtors produced principally by a decrease in Cerj and Coelce as a result of the return of the regulatory asset.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 21 |
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Total borrowings of the Company reflect a reduction of $1,540,585 million with respect to the same period of the previous year, due principally to:
Current Liabilities show a decrease of $477,924 million or 30.5%. This is explained mainly by the reduction of $313,477 million in obligations with the public (bonds), principally due to the payment of the Euro Bonds for € 400 million, the reduction of $89,691 million in short term obligations with banks as a result of the prepayment of loans for $66,377 million by Edesur and $45,942 million by Luz de Bogotá. There were also decreases of $33,440 million in provisions, $17,180 million in the short term portion of long term obligations with banks after paying off debt and $52,354 million in sundry creditors, partially compensated by an increase of $76,320 million in accounts payable to related companies.
Long Term Liabilities fell by $820,889 million or 17.2% as a result of the decrease of $1,391,476 million in obligations with banks due to the prepayment of credits and the refinancing of debt by means of a bond issue, a decrease of $39,264 million in other long term liabilities and the reduction of $20,219 million in bills payable, partially compensated by the increase of $601,692 million in obligations to the public in order to prepay bank debt.
Minority Interest fell by $352,843 million due to the increase in the participations in Cerj and Central Costanera and, in addition, to the reduction to the investments in the foreign subsidiaries controlled in dollars in accordance with Technical Bulletin Nº 64.
With regard to Equity , we should point out that this increased by $111,071 million with respect to June 30, 2003. This variation is explained principally by the shares underwritten in respect of the capital increase during the second preferential option period in the month of December and by the capitalization of the B1 and B2 bond series.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 22 |
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Financial Debt Maturity with Third Parties, Million Ch$
Table 7
FINANCIAL DEBT MATURITY | TOTAL | |||||||
Million Ch$ | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | Balance | |
Chile | 33,251 | 75,284 | 493,087 | 316,288 | 357,447 | 408,822 | 1,120,117 | 2,804,298 |
Enersis | 68 | 141 | 265,920 | 75,739 | 75,825 | 1,592 | 406,328 | 825,612 |
Chilectra | 6,131 | - | - | 21,985 | - | - | - | 28,116 |
Otras | 14,640 | 52,935 | 113,015 | 44,118 | 11,028 | 1,098 | 462 | 237,296 |
Endesa | 12,413 | 22,208 | 114,153 | 174,447 | 270,595 | 406,132 | 713,327 | 1,713,274 |
Argentina | 38,263 | 77,834 | 62,332 | 24,782 | 13,355 | 13,355 | 25,719 | 255,640 |
Edesur | 22,605 | 39,001 | 29,299 | 4,136 | - | - | - | 95,040 |
Costanera | 15,658 | 38,834 | 33,033 | 20,646 | 13,355 | 13,355 | 25,719 | 160,599 |
Perú | 30,640 | 45,050 | 79,565 | 48,912 | 14,661 | 13,694 | 20,261 | 252,782 |
Edelnor | 17,227 | - | 32,988 | 10,734 | 5,498 | 7,331 | 14,661 | 88,439 |
Edegel | 13,413 | 45,050 | 46,577 | 38,178 | 9,163 | 6,363 | 5,599 | 164,344 |
Brasil | 100,234 | 40,665 | 27,127 | 38,221 | 30,216 | 16,692 | 57,597 | 310,752 |
Coelce | 37,118 | 18,285 | 10,318 | 11,594 | 21,525 | 9,347 | 44,975 | 153,163 |
Cerj | 62,514 | 20,900 | 14,866 | 24,079 | 7,602 | 7,345 | 12,622 | 149,928 |
Cachoeira | 602 | 1,480 | 1,942 | 2,549 | 1,089 | - | - | 7,661 |
Colombia | 34,868 | 15,201 | 53,701 | 19,406 | - | 85,572 | 106,066 | 314,815 |
Codensa | - | - | - | - | - | 11,785 | 106,066 | 117,852 |
Emgesa | 34,868 | 1,452 | 39,952 | 5,657 | - | 73,787 | - | 155,715 |
Betania | - | 13,749 | 13,749 | 13,749 | - | - | - | 41,248 |
TOTAL | 237,257 | 254,035 | 715,812 | 447,610 | 415,679 | 538,134 | 1,329,760 | 3,938,287 |
(*) Includes: IIMV, CAM, Endesa, Chile Internacional, Pangue, Pehuenche, San Isidro, Celta and Tunel El Melon |
Financial Debt Maturity with Third Parties, Thousand US $
Table 7.1
FINANCIAL DEBT MATURITY | TOTAL | |||||||
Thousand US$ | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | Balance | |
Chile | 52,257 | 118,316 | 774,929 | 497,074 | 561,759 | 642,499 | 1,760,359 | 4,407,195 |
Enersis | 107 | 222 | 417,915 | 119,030 | 119,165 | 2,502 | 638,579 | 1,297,519 |
Chilectra | 9,636 | - | - | 34,552 | - | - | - | 44,187 |
Other (*) | 23,007 | 83,193 | 177,613 | 69,335 | 17,331 | 1,726 | 726 | 372,931 |
Endesa | 19,507 | 34,901 | 179,400 | 274,158 | 425,263 | 638,272 | 1,121,055 | 2,692,557 |
Argentina | 60,134 | 122,324 | 97,960 | 38,947 | 20,988 | 20,988 | 40,419 | 401,760 |
Edesur | 35,526 | 61,293 | 46,045 | 6,500 | - | - | - | 149,364 |
Costanera | 24,609 | 61,030 | 51,914 | 32,447 | 20,988 | 20,988 | 40,419 | 252,396 |
Perú | 48,154 | 70,800 | 125,043 | 76,869 | 23,041 | 21,521 | 31,841 | 397,269 |
Edelnor | 27,074 | - | 51,843 | 16,869 | 8,641 | 11,521 | 23,041 | 138,989 |
Edegel | 21,080 | 70,800 | 73,200 | 60,000 | 14,400 | 10,000 | 8,800 | 258,280 |
Brasil | 157,526 | 63,908 | 42,632 | 60,068 | 47,488 | 26,233 | 90,519 | 488,373 |
Coelce | 58,334 | 28,737 | 16,216 | 18,221 | 33,829 | 14,690 | 70,682 | 240,708 |
Cerj | 98,246 | 32,846 | 23,364 | 37,842 | 11,948 | 11,543 | 19,837 | 235,624 |
Cachoeira | 946 | 2,326 | 3,052 | 4,006 | 1,711 | - | - | 12,040 |
Colombia | 54,798 | 23,890 | 84,396 | 30,499 | - | 134,484 | 166,693 | 494,759 |
Codensa | - | - | - | - | - | 18,521 | 166,693 | 185,214 |
Emgesa | 54,798 | 2,282 | 62,788 | 8,890 | - | 115,962 | - | 244,720 |
Betania | - | 21,608 | 21,608 | 21,608 | - | - | - | 64,825 |
TOTAL | 372,869 | 399,238 | 1,124,960 | 703,457 | 653,275 | 845,724 | 2,089,831 | 6,189,355 |
(*) Includes: IIMV, CAM, Endesa, Chile Internacional, Pangue, Pehuenche, San Isidro, Celta and Tunel El Melon |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 23 |
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Consolidated Cash Flow
Under Chilean GAAP, million Ch$
Table 8
Million Ch$ | 6M 04 | 6M 03 | Var 04-03 | Chg % |
CASH FLOWS ORIGINATED FROM OPERATING ACTIVITIES | ||||
Net income (loss) for the year | 13,774 | 40,123 | (26,349) | (65.7%) |
Profit (losses) from sales of assets: | ||||
(Profit) loss on sale of fixed assets | (245) | (82,394) | 82,149 | 99.7% |
Charges (credits) which do not represent cash flows: | ||||
Depreciation | 207,021 | 231,479 | (24,458) | (10.6%) |
Amortization of intangibles | 3,360 | 4,835 | (1,475) | (30.5%) |
Write-offs and accrued expenses | 42,084 | 18,770 | 23,314 | 124.2% |
Accrued profit from related companies (less) | (16,097) | (20,364) | 4,267 | 21.0% |
Accrued losses from related companies | 2 | 279 | (277) | (99.3%) |
Amortization of positive goodwill | 26,928 | 27,084 | (156) | (0.6%) |
Amortization of negative goodwill (less) | (9,455) | (44,152) | 34,697 | 78.6% |
Net, price-level restatement | (1,749) | 8,101 | (9,850) | (121.6%) |
Net, foreign exchange effect | (11,850) | (8,359) | (3,491) | (41.8%) |
Other credits which do not represent cash flow (less) | (16,698) | (11,472) | (5,226) | (45.6%) |
Other charges which do not represent cash flow | 34,267 | 93,859 | (59,592) | (63.5%) |
Assets variations which affect cash flow: | ||||
Decrease in receivables accounts | 14,618 | (121,180) | 135,798 | 112.1% |
Decrease (increase) in inventory | (5,562) | 515 | (6,077) | - |
Decrease (increase) in other assets | (4,755) | (15,380) | 10,625 | 69.1% |
Liabilities variations which affect cash flow: | ||||
(Decreased) increase in payable accounts related to operating income | (28,610) | (51,720) | 23,110 | 44.7% |
Increase of payable interest | 13,198 | 6,224 | 6,974 | 112.0% |
Net increase (decrease) of payable income tax | 3,258 | 10,164 | (6,906) | (67.9%) |
Increase (decrease) of other payable accounts related to non-operating income | (36,793) | 50,024 | (86,817) | (173.5%) |
Net (decrease) of payable value added tax and other taxes | (11,924) | 62,741 | (74,665) | (119.0%) |
Profit related to minority interest | 53,195 | 22,727 | 30,468 | 134.1% |
NET POSITIVE CASH FLOW ORIGINATED FROM OP. ACTIVITIES | 267,971 | 221,901 | 46,070 | 20.8% |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 24 |
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Cont. Table 8
Million Ch$ | 6M 04 | 6M 03 | Var 04-03 | Chg % |
CASH FLOWS ORIGINATED FROM FINANCING ACTIVITIES | ||||
Shares issued and suscribed | - | 468,418 | (468,418) | - |
Proceeds from loans hired | 500,851 | 428,944 | 71,907 | 16.8% |
Proceeds from debt issuance | 163,344 | 32,907 | 130,437 | - |
Proceeds from loans obtained from related companies | - | - | - | - |
Proceeds from other loans obtained from related companies | - | - | - | - |
Other sources of financing | 19,868 | 7,127 | 12,741 | 178.8% |
Capital paid | (4,047) | (10,012) | 5,965 | - |
Dividends paid | (58,728) | (62,573) | 3,845 | 6.1% |
Loans, debt amortization (less) | (743,176) | (465,321) | (277,855) | (59.7%) |
Issuance debt amortization (less) | (17,645) | (140,096) | 122,451 | 87.4% |
Amortization of loans obtained from related companies | - | (4,503) | 4,503 | 100.0% |
Amortization of other loans obtained from related companies | - | - | - | - |
Expenses paid related to capital variations (less) | - | - | - | - |
Expenses paid related to debt issuance (less) | (1,312) | (99) | (1,213) | - |
Other disbursements related to financing (less) | (7,541) | (78,486) | 70,945 | 90.4% |
NET (NEGATIVE) CASH FLOW ORIG. FROM FINANCING ACTIVITIES | (148,387) | 176,307 | (324,694) | (184.2%) |
CASH FLOWS ORIGINATED FROM INVESTING ACTIVITIES | ||||
Sale of fixed assets | 1,275 | 161,684 | (160,409) | (99.2%) |
Sale of long-term Investments | 2,588 | 120,674 | (118,086) | - |
Collection upon other loans to related companies | 6,201 | 7,604 | (1,403) | (18.5%) |
Other income on investments | 38,091 | 50,231 | (12,140) | (24.2%) |
Additions to fixed assets (less) | (127,414) | (147,747) | 20,333 | 13.8% |
Long-term investments (less) | - | (25) | 25 | 100.0% |
Investment in financing instruments | (236) | - | (236) | - |
Other loans to related companies (less) | - | (208) | 208 | 100.0% |
Other investment disbursements (less) | (1,672) | (7,072) | 5,400 | 76.4% |
NET (NEGATIVE) CASH FLOW ORIGINATED FROM INVESTMENT ACTIVITIES | (81,167) | 185,140 | (266,307) | (143.8%) |
NET POSITIVE CASH FLOW FOR THE PERIOD | 38,418 | 583,348 | (544,930) | (93.4%) |
EFFECT OF PRICE-LEVEL RESTATEMENT UPON CASH AND CASH EQ. | 18,285 | (54,107) | 72,392 | 133.8% |
NET VARIATION OF CASH AND CASH EQUIVALENT | 56,703 | 529,242 | (472,539) | (89.3%) |
INITIAL BALANCE OF CASH AND CASH EQUIVALENT | 333,822 | 224,967 | 108,855 | 48.4% |
FINAL BALANCE OF CASH AND CASH EQUIVALENT | 390,524 | 754,208 | (363,684) | (48.2%) |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 25 |
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Under Chilean GAAP, Thousand US $
Table 8.1
Thousand US$ | 6M 04 | 6M 03 | Var 04-03 | Chg % |
CASH FLOWS ORIGINATED FROM OPERATING ACTIVITIES | ||||
Net income (loss) for the year | 21,647 | 63,057 | (41,410) | (65.7%) |
Profit (losses) from sales of assets: | ||||
(Profit) loss on sale of fixed assets | (384) | (129,490) | 129,106 | 99.7% |
Charges (credits) which do not represent cash flows: | ||||
Depreciation | 325,351 | 363,788 | (38,437) | (10.6%) |
Amortization of intangibles | 5,281 | 7,598 | (2,317) | (30.5%) |
Write-offs and accrued expenses | 66,139 | 29,499 | 36,640 | 124.2% |
Accrued profit from related companies (less) | (25,298) | (32,004) | 6,706 | 21.0% |
Accrued losses from related companies | 3 | 438 | (435) | (99.3%) |
Amortization of positive goodwill | 42,320 | 42,564 | (244) | (0.6%) |
Amortization of negative goodwill (less) | (14,859) | (69,389) | 54,530 | 78.6% |
Net, price-level restatement | (2,748) | 12,732 | (15,480) | (121.6%) |
Net, foreign exchange effect | (18,623) | (13,137) | (5,486) | (41.8%) |
Other credits which do not represent cash flow (less) | (26,243) | (18,030) | (8,213) | (45.6%) |
Other charges which do not represent cash flow | 53,854 | 147,507 | (93,653) | (63.5%) |
Assets variations which affect cash flow: | ||||
Decrease in receivables accounts | 22,974 | (190,444) | 213,418 | 112.1% |
Decrease (increase) in inventory | (8,741) | 809 | (9,550) | - |
Decrease (increase) in other assets | (7,473) | (24,171) | 16,698 | 69.1% |
Liabilities variations which affect cash flow: | ||||
(Decreased) increase in payable accounts related to operating income | (44,962) | (81,283) | 36,321 | 44.7% |
Increase of payable interest | 20,742 | 9,782 | 10,960 | 112.0% |
Net increase (decrease) of payable income tax | 5,121 | 15,973 | (10,852) | (67.9%) |
Increase (decrease) of other payable accounts related to non-operating income | (57,823) | 78,618 | (136,441) | (173.5%) |
Net (decrease) of payable value added tax and other taxes | (18,739) | 98,603 | (117,342) | (119.0%) |
Profit related to minority interest | 83,601 | 35,717 | 47,884 | 134.1% |
NET POSITIVE CASH FLOW ORIGINATED FROM OP. ACTIVITIES | 421,140 | 348,737 | 72,403 | 20.8% |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 26 |
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Cont. Table 8.1
Thousand US$ | 6M 04 | 6M 03 | Var 04-03 | Chg % |
CASH FLOWS ORIGINATED FROM FINANCING ACTIVITIES | ||||
Shares issued and suscribed | - | 736,159 | (736,159) | - |
Proceeds from loans hired | 787,130 | 674,123 | 113,007 | 16.8% |
Proceeds from debt issuance | 256,709 | 51,717 | 204,992 | - |
Proceeds from loans obtained from related companies | - | - | - | - |
Proceeds from other loans obtained from related companies | - | - | - | - |
Other sources of financing | 31,224 | 11,200 | 20,024 | 178.8% |
Capital paid | (6,360) | (15,734) | 9,374 | - |
Dividends paid | (92,296) | (98,339) | 6,043 | 6.1% |
Loans, debt amortization (less) | (1,167,965) | (731,292) | (436,673) | (59.7%) |
Issuance debt amortization (less) | (27,731) | (220,172) | 192,441 | 87.4% |
Amortization of loans obtained from related companies | - | (7,077) | 7,077 | 100.0% |
Amortization of other loans obtained from related companies | - | - | - | - |
Expenses paid related to capital variations (less) | - | - | - | - |
Expenses paid related to debt issuance (less) | (2,062) | (155) | (1,907) | - |
Other disbursements related to financing (less) | (11,851) | (123,348) | 111,497 | 90.4% |
NET (NEGATIVE) CASH FLOW ORIG. FROM FINANCING ACTIVITIES | (233,202) | 277,081 | (510,283) | (184.2%) |
CASH FLOWS ORIGINATED FROM INVESTING ACTIVITIES | ||||
Sale of fixed assets | 2,003 | 254,101 | (252,098) | (99.2%) |
Sale of long-term Investments | 4,067 | 189,649 | (185,582) | - |
Collection upon other loans to related companies | 9,745 | 11,951 | (2,206) | (18.5%) |
Other income on investments | 59,863 | 78,942 | (19,079) | (24.2%) |
Additions to fixed assets (less) | (200,242) | (232,197) | 31,955 | 13.8% |
Long-term investments (less) | - | (40) | 40 | 100.0% |
Investment in financing instruments | (370) | - | (370) | - |
Other loans to related companies (less) | - | (327) | 327 | 100.0% |
Other investment disbursements (less) | (2,627) | (11,115) | 8,488 | 76.4% |
NET (NEGATIVE) CASH FLOW ORIGINATED FROM INVESTMENT ACTIVITIES | (127,561) | 290,964 | (418,525) | (143.8%) |
NET POSITIVE CASH FLOW FOR THE PERIOD | 60,377 | 916,782 | (856,405) | (93.4%) |
EFFECT OF PRICE-LEVEL RESTATEMENT UPON CASH AND CASH EQ. | 28,736 | (85,033) | 113,769 | 133.8% |
NET VARIATION OF CASH AND CASH EQUIVALENT | 89,113 | 831,748 | (742,635) | -89.3% |
INITIAL BALANCE OF CASH AND CASH EQUIVALENT | 524,629 | 353,555 | 171,074 | 48.4% |
FINAL BALANCE OF CASH AND CASH EQUIVALENT | 613,742 | 1,185,303 | (571,561) | (48.2%) |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 27 |
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Consolidated Cash Flow Analysis
During the period, the company generated a net cash flow of $38,418 million, which is comprised of the following activities:
Table 9
Effective Cash Flow (million Ch$) | 6M 04 | 6M 03 | Var 04-03 | Chg % |
Operating | 267,971 | 221,900 | 46,071 | 20.8% |
Financing | (148,386) | 176,307 | (324,693) | 184.2% |
Investment | (81,167) | 185,141 | (266,308) | 143.8% |
Net cash flow of the period | 38,418 | 583,348 | (544,930) | (93.4%) |
Table 9.1
Effective Cash Flow (thousand US$) | 6M 04 | 6M 03 | Var 04-03 | Chg % |
Operating | 421,140 | 348,734 | 72,406 | 20.8% |
Financing | (233,201) | 277,081 | (510,282) | 184.2% |
Investment | (127,561) | 290,965 | (418,526) | 143.8% |
Net cash flow of the period | 60,379 | 916,780 | (856,401) | (93.4%) |
Operating Activitiesgenerated a net positive cash flow of $267,971 million, an increase of $46,071 million with respect to that obtained as of the same date of the previous year. As of June 30, 2004, the operating cash flow was mainly comprised of the profit of $13,774 million for the period, plus the net charges of $313,663 million to results that do not represent cash flow and which correspond principally to depreciation of $207,021 million for the period, write-offs and provisions for $42,084 million, amortization of positive goodwill of $26,928 million and other charges for $34,267 million that do not represent cash flow, amongst which is the effect of the conversion to Technical Bulletin 64 for $788 million, increased by the reduction of $4,101 million in assets that affect cash flow. The above was partially compensated by the reduction of $60,869 million in liabilities that affect the operating cash flow and by credits for $55,650 million that do not represent cash flow, of which $12,300 million correspond to the positive effect of the conversion of the foreign subsidiaries.
Financing Activitiesproduced a negative cash flow of $148,386 million due mainly to the payment of loans for a value of $743,176 million, a payment of dividends for $58,728 million, the payment of Bonds for $17,645 million and other investment payments for $7,541 million. These are partially compensated by loans received for $500,851 million, Bonds issued for $163,344 million and other sources of finance for $19,868 million.
Investment Activitiesgenerated a net negative cash flow of $81,167 million, explained fundamentally by the incorporation of fixed assets worth $127,413 million, mainly related to the investment being made in the Ralco Plant that for this period amounts to $47,093 million and other disbursements of $1,671 million partially compensated by other income from investments for $38,091 million, recovery of loans to related companies for $6,201 million and by the sale of subsidiaries for $2,588 million.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 28 |
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Cash Flow Received From Foreign Subsidiaries by Enersis, Chilectra and Endesa Chile.
Table 10
Millions Ch$ | Interest Received | Dividends Received | Management Fee | Prepayment Intercompany | Others | |||||
6M 04 | 6M 03 | 6M 04 | 6M 03 | 6M 04 | 6M 03 | 6M 04 | 6M 03 | 6M 04 | 6M 03 | |
Argentina | 3,706 | 6,063 | - | - | 1,584 | - | 12,726 | - | - | - |
Peru | - | - | 6,562 | 4,464 | - | - | - | - | 2,464 | 5,509 |
Brazil | 2,060 | 2,072 | 4,837 | - | - | - | - | - | - | - |
Colombia | 9,647 | 11,491 | 6,852 | 9,020 | - | - | - | - | - | 7,127 |
Total | 15,413 | 19,627 | 18,250 | 13,483 | 1,584 | - | 12,726 | - | 2,464 | 12,636 |
Millions Ch$ | Total Cash Received | |||||||||
6M 04 | 6M 03 | |||||||||
Argentina | 18,016 | 6,063 | ||||||||
Peru | 9,027 | 9,973 | ||||||||
Brazil | 6,896 | 2,072 | ||||||||
Colombia | 16,499 | 27,637 | ||||||||
Total | 50,438 | 45,746 | ||||||||
Table 10.1
Thousand US$ | Interest Received | Dividends Received | Management Fee | Prepayment Intercompany | Others | |||||
6M 04 | 6M 03 | 6M 04 | 6M 03 | 6M 04 | 6M 03 | 6M 04 | 6M 03 | 6M 04 | 6M 03 | |
Argentina | 5,825 | 9,529 | - | - | 2,489 | - | 20,000 | - | - | - |
Peru | - | - | 10,313 | 7,015 | - | - | - | - | 3,873 | 8,658 |
Brazil | 3,237 | 3,257 | 7,601 | - | - | - | - | - | - | - |
Colombia | 15,161 | 18,059 | 10,768 | 14,175 | - | - | - | - | - | 11,200 |
Total | 24,223 | 30,845 | 28,682 | 21,190 | 2,489 | - | 20,000 | - | 3,873 | 19,858 |
Thousand US$ | Total Cash Received | |||||||||
6M 04 | 6M 03 | |||||||||
Argentina | 28,314 | 9,529 | ||||||||
Peru | 14,186 | 15,673 | ||||||||
Brazil | 10,838 | 3,257 | ||||||||
Colombia | 25,929 | 43,434 | ||||||||
Total | 79,267 | 71,893 | ||||||||
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 29 |
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Capex and Depreciation
Table 11
Payments for Additions of Fixed assets | Depreciation | |||
Million Ch$ | 6M 04 | 6M 03 | 6M 04 | 6M 03 |
Endesa S.A. | 56,063 | 84,294 | 89,567 | 105,679 |
Chilectra S.A. | 6,744 | 12,230 | 6,899 | 6,278 |
Edesur S.A. | 14,738 | 11,907 | 27,587 | 31,687 |
Edelnor S.A. | 5,073 | 4,995 | 8,986 | 9,056 |
Cerj | 26,191 | 18,550 | 24,237 | 25,018 |
Coelce | 13,855 | 10,159 | 20,246 | 21,925 |
Codensa S.A. | 2,293 | 5,135 | 27,723 | 30,038 |
Cam Ltda. | 867 | 351 | 563 | 620 |
Inmobiliaria Manso de Velasco Ltda. | 16 | - | 142 | 119 |
Synapsis Soluciones y Servicios Ltda. | 1,555 | 128 | 531 | 511 |
Holding Enersis | 18 | - | 540 | 547 |
Total | 127,413 | 147,747 | 207,021 | 231,479 |
Table 11.1
Payments for Additions of Fixed assets | Depreciation | |||
Thousand US$ | 6M 04 | 6M 03 | 6M 04 | 6M 03 |
Endesa S.A. | 88,107 | 132,475 | 140,762 | 166,084 |
Chilectra S.A. | 10,599 | 19,220 | 10,843 | 9,866 |
Edesur S.A. | 23,162 | 18,712 | 43,355 | 49,799 |
Edelnor S.A. | 7,973 | 7,851 | 14,122 | 14,232 |
Cerj | 41,161 | 29,152 | 38,090 | 39,318 |
Coelce | 21,774 | 15,965 | 31,819 | 34,458 |
Codensa S.A. | 3,603 | 8,071 | 43,568 | 47,207 |
Cam Ltda. | 1,363 | 551 | 885 | 975 |
Inmobiliaria Manso de Velasco Ltda. | 25 | - | 224 | 188 |
Synapsis Soluciones y Servicios Ltda. | 2,444 | 202 | 835 | 804 |
Holding Enersis | 28 | - | 849 | 860 |
Total | 200,238 | 232,199 | 325,353 | 363,788 |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 30 |
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Generation Business
Table 12
Million US$ | Million Ch$ | ||||
6M 04 | 6M 03 | 6M 04 | 6M 03 | Chg% | |
Operating Revenues | 861 | 767 | 547,592 | 488,340 | 12.1% |
Operating Costs | (525) | (457) | (334,000) | (290,512) | (15.0%) |
Selling and Administrative Expenses | (36) | (25) | (22,889) | (15,911) | (43.9%) |
Operating Income | 300 | 286 | 190,703 | 181,917 | 4.8% |
Interest Income | 12 | 13 | 7,694 | 8,134 | (5.4%) |
Interest Expenses | (160) | (155) | (102,018) | (98,573) | (3.5%) |
Net Financial Income (Expenses) | (148) | (142) | (94,324) | (90,439) | (4.3%) |
Equity Gains from Related Company | 17 | 32 | 10,531 | 20,327 | (48.2%) |
Equity Losses from Related Company | (0) | (0) | (43) | (278) | 84.6% |
Net Income from Related Companies | 16 | 32 | 10,488 | 20,048 | (47.7%) |
Other Non Operating Income | 13 | 27 | 8,346 | 17,364 | (51.9%) |
Other Non Operating Expenses | (31) | (70) | (19,828) | (44,373) | 55.3% |
Net other Non Operating Income (Expenses) | (18) | (42) | (11,482) | (27,009) | 57.5% |
Price Level Restatement | 2 | 3 | 1,275 | 2,078 | (38.6%) |
Foreign Exchange Effect | 6 | 8 | 3,515 | 5,062 | (30.6%) |
Net of Monetary Exposure | 8 | 11 | 4,790 | 7,140 | (32.9%) |
Positive Goodwill Amortization | (1) | (1) | (821) | (898) | 8.6% |
Non Operating Income | (144) | (143) | (91,348) | (91,158) | (0.2%) |
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 156 | 143 | 99,355 | 90,759 | 9.5% |
Extraordinary Items | - | - | - | - | - |
Income Tax | (83) | (20) | (53,036) | (12,859) | - |
Minority Interest | (35) | (61) | (22,250) | (38,505) | 42.2% |
Negative Goodwill Amortization | 14 | 14 | 8,882 | 8,796 | 1.0% |
NET INCOME | 52 | 76 | 32,952 | 48,190 | (31.6%) |
Net Income
Endesa Chile recorded a Net Income of $32,952 million on the first half 2004, $15,238 million lower than the previous year. This is mainly explained by:
Operating Income
Endesa Chile’s operating income as of June 30, 2004 came to $190,703 million, an increase of 5% over the result as of the same date in 2003. This increase in the operating income in mainly due to the improved results of the operations in Colombia and Argentina, which were partially affected by the decrease in the operating income in Chile. During the first half of 2004, sales amounted to 26,223 GWh, representing an increase of 6.4% with respect to the same period of 2003.
InChile, operating income in the first semester of 2004 amounted to $66,502 million, a decrease of 17% with respect to the same period of the year 2003. This is as a result of the increase is variable operating costs. Hydroelectric generation, as a percentage of total generation was less than in 2003 when we had the contribution of the Canutillar hydroelectricity plant up to the month of March and a greater availability of water in comparison with the first half of this year. Furthermore, the unit cost of thermal generation was greater than in the same period of 2003 as a consequence of the natural gas restriction from Argentina. We should point out that the readjustment in SIC node prices of 6.2% in Ch$ and 18.8% in US$, applicable as from May of this year, partially compensate the higher costs involved in thermal electricity generation.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 31 |
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InArgentina, operating income as of June, 2004 amounted to $19,087 million, a rise of 34% with respect to the figure as of June 2003, when the operating income was $14,291 million. The improved result in Argentina is due to the significant increase by 9.3% in energy demand which has led to improved results in our subsidiaries, El Chocón and Central Costanera. We should mention that, despite the important increase of 43% in sales in Argentina, equivalent to $25,573 million, the operating margin rose by only $4,796 million as a consequence of the increase in costs of thermal generation due to a greater use of fuel oil versus natural gas in view of the natural gas crisis in this market. The capacity of Central Costanera to operate not only with natural gas but also with fuel oil has meant that the first half of this year has been marked by a greater dispatch from our subsidiary Costanera’s thermal plant.
InBrazil, the operating income of Cachoeira Dourada as of June 2004 amounted to $7,781 million, an increase of 7% over the figure as of June 30, 2003. Operating income rose by a significant 32.5% to $29,651 million, as a result of a judicial sentence dictated on June 16, which established that the client, CELG, had to pay for 100% of the energy in accordance with the conditions established in the contractual agreement, and not just 50% as established in the sentence passed previously, in July 2003. Due to this, income for the first half of the year 2004 includes a figure close to $9,000 million from invoices corresponding to the second semester of the year 2003 in addition to a provision of $7,000 million whilst awaiting a definite agreement on the debt pending from this client. Cachoeira Dourada's physical generation increased significantly by 53% with respect to the same period of 2003, as a result of favorable hydrological conditions. The energy generated that was not delivered to the only client, CELG, was sold on the spot market, achieving an amount superior to that of 2003.
InColombia, the operating result for the first half of 2004 rose by 39%, to $64,617 million, owing to the improved operating results obtained by the two generating subsidiaries, Emgesa and Betania. Income from sales of energy rose by 17% as a result of greater demand on the Colombian market and to greater hydrology, principally in the northeastern region that corresponds to Emgesa, permitting an increase of 20% in the physical generation of electricity, reducing the cost of thermal generation and the costs of purchasing energy in the first half of the year 2004.
InPeru, the operating income as of June 2004 fell by 2% to $32,716 million. The greater income from sales resulting from higher sales prices, compensated by lower physical sales due to lower hydrology, did not manage to compensate for the higher variable costs of generation as a consequence of a greater dispatch of thermal energy and of higher costs of purchasing energy.
Non Operating Income
The non-operating result for the first half of 2004 was a loss of $91,348 million, compared to a loss of $91,158 million the year before. This slight decrease is explained by $9,560 million less net income from related companies, $3,885 million higher net financial expenses, $803 million less price level restatement and $1,547 million less exchange differences, all this which was offset by $15,527 million increased in net other non-operating income and expenses.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 32 |
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Table 13
Country | Market | GWh Sold | Var 04-03 | Chg % | Market Share | ||
6M 04 | 6M 03 | 6M 04 | 6M 03 | ||||
Chile | SIC & SING | 8,515 | 9,290 | (775) | (8.3%) | 37.8% | 44.2% |
SIC | 8,047 | 8,822 | (775) | (8.8%) | 47.0% | 55.5% | |
SING | 468 | 468 | - | 0.0% | 8.7% | 9.2% | |
Argentina | SIN | 5,891 | 4,244 | 1,647 | 38.8% | 14.2% | 9.3% |
Chocón | 1,732 | 2,434 | (702) | (28.8%) | |||
Costanera | 4,159 | 1,810 | 2,349 | 129.8% | |||
Perú | SICN | 2,239 | 2,409 | (170) | (7.1%) | 24.4% | 27.8% |
Edegel | 2,239 | 2,409 | (170) | (7.1%) | |||
Colombia | SIN | 7,743 | 7,016 | 727 | 10.4% | 24.2% | 21.0% |
Betania | 1,151 | 1,197 | (46) | (3.8%) | |||
Emgesa | 6,592 | 5,819 | 773 | 13.3% | |||
Brazil | SICN | 1,835 | 1,679 | 156 | 9.3% | 1.0% | 1.1% |
Cachoeira | 1,835 | 1,679 | 156 | 9.3% | |||
Total | 26,223 | 24,638 | 1,585 | 6.4% | |||
Table 14
Company | GWh Produced | Var 04-03 | Chg % | |
6M 04 | 6M 03 | |||
Chilean Companies | 7,787 | 8,534 | (747) | (8.8%) |
Chocón | 1,663 | 2,113 | (450) | (21.3%) |
Costanera | 4,276 | 1,433 | 2,843 | 198.4% |
Edegel | 2,239 | 2,444 | (205) | (8.4%) |
Betania | 870 | 697 | 173 | 24.8% |
Emgesa | 5,218 | 4,380 | 838 | 19.1% |
Cachoeira | 1,575 | 1,028 | 547 | 53.2% |
TOTAL | 23,628 | 20,629 | 2,999 | 14.5% |
Endesa Financial Debt Maturity (with third party)
US$ 2,692 million
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www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 33 |
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Distribution Business
Highlights
Table 15
Distribution Business | 6M 04 | 6M 03 | Var 04-03 | Chg % |
Customers (Th) | 10,634 | 10,219 | 415 | 4.1% |
GWh Sold | 25,827 | 24,479 | 1,348 | 5.5% |
Clients/Employe | 1,497 | 1,407 | 90 | 6.4% |
Energy Losses GWh (TTM) | 6,935 | 6,719 | 216 | 3.2% |
Energy Losses % (TTM) | 12.0% | 12.1% | (0.1%) | |
Chile
Due to the increase in node prices, with retroactive effect from May 1st, distribution tariffs will increase around 10% to residential clients and 15%-20% to industrial clients. The retroactive effect will be charged between July and August. Chilectra will pass-through this increase.
Brazil
On April 2004, tariffs of Coelce increased 11,1%. Additionally, from July onwards, tariff will increase 0.92% due to a government recalculation, and to be applied retroactively from April 22nd.
As of June 2004, Cerj has reduced debt by US$ 217 million, due to the capitalization of intercompany loans granted by Enersis. This will allow Cerj to have a higher free cash flow.
Colombia
Physical sales in our concession area increased by 5.4% during 2004, respect same period 2003.
The average spot price in June decreased by 27% in comparison with May, due to the increase in the availability of water
Argentina
Energy demand has continued growing, showing an increase of 7.9% when compared to the previous year.
The new government resolution 659, applicable since June 18th, allows to reduce exports, of gas to Chile, only when is necessary to meet local demand.
Peru
On June, Edelnor issued bonds in local currency , by 80 million Soles.
On the following pages an analysis of Enersis’ distribution subsidiaries is shown. Figures of foreign subsidiaries are accounted for under Chilean Technical Bulletin 64, therefore they could differ from those registered in their respective local GAAP.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 34 |
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Chilectra
Table 16
Million US$ | Million Ch$ | ||||
6M 04 | 6M 03 | 6M 04 | 6M 03 | Chg% | |
Revenues from Sales | 316 | 316 | 201,000 | 200,955 | 0.0% |
Other Operating Revenues | 13 | 10 | 8,163 | 6,599 | 23.7% |
Operating Revenues | 329 | 326 | 209,163 | 207,554 | 0.8% |
Energy Purchases | (199) | (198) | (126,598) | (125,846) | (0.6%) |
Other Operating Cost | (33) | (31) | (20,838) | (19,723) | (5.6%) |
Operating Costs | (232) | (229) | (147,435) | (145,569) | (1.3%) |
Selling and Administrative Expenses | (27) | (23) | (17,258) | (14,598) | (18.2%) |
Operating Income | 70 | 74 | 44,469 | 47,386 | (6.2%) |
Interest Income | 2 | 1 | 1,089 | 695 | 56.7% |
Interest Expenses | (28) | (32) | (17,917) | (20,387) | 12.1% |
Net Financial Income (Expenses) | (26) | (31) | (16,828) | (19,692) | 14.5% |
Equity Gains from Related Company | 5 | 4 | 3,191 | 2,309 | 38.2% |
Equity Losses from Related Company | (5) | (73) | (2,972) | (46,540) | 93.6% |
Net Income from Related Companies | 0 | (70) | 219 | (44,231) | 100.5% |
Other Non Operating Income | 22 | 25 | 14,184 | 16,146 | (12.2%) |
Other Non Operating Expenses | (9) | (9) | (5,444) | (5,933) | 8.2% |
Conversion Effect (BT 64) | - | - | - | - | |
Net other Non Operating Income (Expenses) | 14 | 16 | 8,740 | 10,213 | (14.4%) |
Price Level Restatement | (5) | 2 | (3,282) | 1,364 | - |
Foreign Exchange Effect | - | - | - | - | |
Net of Monetary Exposure | (5) | 2 | (3,282) | 1,364 | - |
Positive Goodwill Amortization | (0) | (0) | (176) | (184) | 4.6% |
Non Operating Income | (18) | (83) | (11,327) | (52,530) | 78.4% |
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 52 | (8) | 33,142 | (5,144) | - |
Extraordinary Items | - | - | - | - | |
Income Tax | (18) | (8) | (11,166) | (4,925) | (126.7%) |
Minority Interest | 2 | 15 | 1,535 | 9,469 | (83.8%) |
Negative Goodwill Amortization | - | 20 | - | 13,001 | (100.0%) |
NET INCOME | 37 | 19 | 23,512 | 12,401 | 89.6% |
Net Income
Chilectra registered a Net Income of $23,512 million for the first half of 2004, $11,111 million higher than the previous year. This result is mainly due to:
Non Operating Income
Lower Non-Operating Loss of $41,203 million, mainly due to lower net loss from related companies of $44,450 million, lower net financial expenses of $2,864 million, compensated by lower net other non operating income of $1,473 million. Partially offset by,
Operating Income
Lower Operating Income of $2.917 million compared to the same period, due to $2,660 of higher selling and administrative expenses of $2.660 million, as result of the increase in remunerations, publicity and operating and maintenance expenses.
Other
Regarding negative goodwill amortization, during this period it decreased in $13,001 million compared to the previous year. The minority interest reached $1,535 million compared with the $9,469 million on this period of 2003.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 35 |
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Additional Information
Table 17
Chilectra | 6M 04 | 6M 03 | Chg % |
Customers (Th) | 1,354 | 1,325 | 2.2% |
GWh Sold | 5,539 | 5,103 | 8.5% |
Clients/Employe | 1,974 | 1,818 | 8.6% |
Energy Losses GWh (TTM) | 584 | 610 | 4.3% |
Energy Losses % (TTM) | 5.1% | 5.6% | 0.5% |
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www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 36 |
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Cerj
Table 18
Million US$ | Million Ch$ | ||||
6M 04 | 6M 03 | 6M 04 | 6M 03 | Chg% | |
Revenues from Sales | 307 | 268 | 195,333 | 170,456 | 14.6% |
Other Operating Revenues | 16 | 20 | 9,887 | 12,829 | (22.9%) |
Operating Revenues | 323 | 288 | 205,220 | 183,285 | 12.0% |
Energy Purchases | (170) | (150) | (107,976) | (95,496) | (13.1%) |
Other Operating Cost | (96) | (87) | (61,309) | (55,112) | (11.2%) |
Operating Costs | (266) | (237) | (169,286) | (150,608) | (12.4%) |
Selling and Administrative Expenses | (14) | (9) | (8,767) | (5,426) | (61.6%) |
Operating Income | 43 | 43 | 27,168 | 27,251 | (0.3%) |
Interest Income | 10 | 12 | 6,162 | 7,708 | (20.1%) |
Interest Expenses | (30) | (37) | (18,792) | (23,760) | 20.9% |
Net Financial Income (Expenses) | (20) | (25) | (12,630) | (16,052) | 21.3% |
Equity Gains from Related Company | - | - | - | - | |
Equity Losses from Related Company | (1) | (4) | (649) | (2,453) | 73.5% |
Net Income from Related Companies | (1) | (4) | (649) | (2,453) | 73.5% |
Other Non Operating Income | 1 | 4 | 934 | 2,769 | (66.3%) |
Other Non Operating Expenses | (31) | (60) | (19,469) | (38,449) | 49.4% |
Conversion Effect (BT 64) | 13 | (82) | 8,460 | (52,084) | 116.2% |
Net other Non Operating Income (Expenses) | (16) | (138) | (10,075) | (87,764) | 88.5% |
Price Level Restatement | - | - | - | - | |
Foreign Exchange Effect | - | - | - | - | |
Net of Monetary Exposure | - | - | - | - | |
Positive Goodwill Amortization | - | - | - | - | |
Non Operating Income | (37) | (167) | (23,354) | (106,269) | 78.0% |
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 6 | (124) | 3,813 | (79,018) | 104.8% |
Extraordinary Items | - | - | - | - | |
Income Tax | (5) | (2) | (3,361) | (1,018) | - |
Minority Interest | - | - | - | - | |
Negative Goodwill Amortization | - | - | - | - | |
NET INCOME | 1 | (126) | 452 | (80,036) | 100.6% |
Net Income
Cerj registered a Net Income of $452 million for the first half of 2004, $80,488 million higher than the previous year. This result is mainly due to:
Non Operating Income
Lower Non Operating Loss of $82,915 million, mainly explained by lower net other non operating expenses of $77,689 million, mainly explained by a positive conversion effect of $60,544 million as a result of the Brazilian Reais appreciation and the application of the Technical Bulletin N°64 of Chilean Accounting Principles. Also net financial expenses were reduced in $3,422 million and losses from related companies lowered by $1,804 million. Partially compensated by;
Operating Income
Lower Operating Income of $83 million, basically the same amount reached the previous year. This is explained by higher energy sales as result of the increase in tariffs, compensated by 63 GWh lower sales of energy.
Other
Tax loss increase $2,343 million compared to the previous year.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 37 |
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Additional Information
Table 19
Cerj | 6M 04 | 6M 03 | Chg % |
Customers (Th) | 2,061 | 1,757 | 17.3% |
GWh Sold | 3,791 | 3,854 | (1.6%) |
Clients/Employe | 1,482 | 1,167 | 27.0% |
Energy Losses GWh (TTM) | 2,218 | 2,189 | (1.3%) |
Energy Losses % (TTM) | 23.1% | 23.1% | (0.0%) |
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www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 38 |
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Coelce
Table 20
Million US$ | Million Ch$ | ||||
6M 04 | 6M 03 | 6M 04 | 6M 03 | Chg% | |
Revenues from Sales | 222 | 174 | 141,096 | 110,461 | 27.7% |
Other Operating Revenues | 3 | 3 | 2,043 | 1,884 | 8.4% |
Operating Revenues | 225 | 177 | 143,139 | 112,345 | 27.4% |
Energy Purchases | (133) | (69) | (84,921) | (43,660) | (94.5%) |
Other Operating Cost | (59) | (59) | (37,272) | (37,364) | 0.2% |
Operating Costs | (192) | (127) | (122,193) | (81,023) | (50.8%) |
Selling and Administrative Expenses | (27) | (26) | (16,879) | (16,526) | (2.1%) |
Operating Income | 6 | 23 | 4,067 | 14,795 | (72.5%) |
Interest Income | 16 | 21 | 10,323 | 13,074 | (21.0%) |
Interest Expenses | (23) | (29) | (14,445) | (18,755) | 23.0% |
Net Financial Income (Expenses) | (6) | (9) | (4,122) | (5,681) | 27.4% |
Equity Gains from Related Company | - | - | - | - | |
Equity Losses from Related Company | - | - | - | - | |
Net Income from Related Companies | - | - | - | - | |
Other Non Operating Income | 0 | 1 | 165 | 874 | (81.2%) |
Other Non Operating Expenses | (2) | (4) | (1,077) | (2,240) | 51.9% |
Conversion Effect (BT 64) | (2) | (29) | (1,218) | (18,451) | 93.4% |
Net other Non Operating Income (Expenses) | (3) | (31) | (2,130) | (19,817) | 89.3% |
Price Level Restatement | - | - | - | - | |
Foreign Exchange Effect | - | - | - | - | |
Net of Monetary Exposure | - | - | - | - | |
Positive Goodwill Amortization | - | - | - | - | |
Non Operating Income | (10) | (40) | (6,252) | (25,498) | 75.5% |
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | (3) | (17) | (2,185) | (10,703) | 79.6% |
Extraordinary Items | - | - | - | - | |
Income Tax | (1) | (4) | (601) | (2,780) | 78.4% |
Minority Interest | - | - | - | - | |
Negative Goodwill Amortization | - | - | - | - | |
NET INCOME | (4) | (21) | (2,786) | (13,483) | 79.3% |
Net Income
Coelce registered a Net Loss of $2,786 million for the first half of 2004, $10,697 million lower loss than the previous year. This result is mainly due to:
Non Operating Income
Lower Non-Operating Loss of $19,246 million, mainly explained by a lower negative conversion effect of $17,233 million as a result of the Brazilian Reais appreciation and the application of the Technical Bulletin N°64 of Chilean Accounting Principles. Compensated by;
Operating Income
Lower Operating Income of $10,728 million, mainly due to higher operating costs of $41,170 million basically related to higher energy purchases, compensated by operating revenues of $30,794 million related by higher revenues from sales.
Other
Tax loss decrease by $2,179 million compared to the previous year.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 39 |
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Additional Information
Table 21
Coelce | 6M 04 | 6M 03 | Chg % |
Customers (Th) | 2,195 | 2,210 | (0.7%) |
GWh Sold | 2,920 | 2,802 | 4.2% |
Clients/Employe | 1,609 | 1,600 | 0.6% |
Energy Losses GWh (TTM) | 961 | 860 | (11.7%) |
Energy Losses % (TTM) | 13.8% | 12.9% | (0.9%) |
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www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 40 |
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Codensa
Table 22
Million US$ | Million Ch$ | ||||
6M 04 | 6M 03 | 6M 04 | 6M 03 | Chg% | |
Revenues from Sales | 241 | 205 | 153,114 | 130,522 | 17.3% |
Other Operating Revenues | 73 | 37 | 46,133 | 23,631 | 95.2% |
Operating Revenues | 313 | 242 | 199,248 | 154,153 | 29.3% |
Energy Purchases | (147) | (126) | (93,585) | (79,998) | (17.0%) |
Other Operating Cost | (88) | (91) | (55,931) | (57,774) | 3.2% |
Operating Costs | (235) | (217) | (149,516) | (137,772) | (8.5%) |
Selling and Administrative Expenses | (6) | (16) | (3,863) | (10,371) | 62.7% |
Operating Income | 72 | 9 | 45,868 | 6,010 | - |
Interest Income | 14 | 6 | 9,189 | 3,550 | 158.9% |
Interest Expenses | (10) | (3) | (6,246) | (1,981) | - |
Net Financial Income (Expenses) | 5 | 2 | 2,943 | 1,568 | 87.7% |
Equity Gains from Related Company | - | - | - | - | |
Equity Losses from Related Company | - | - | - | - | |
Net Income from Related Companies | - | - | - | - | |
Other Non Operating Income | 4 | 1 | 2,291 | 417 | - |
Other Non Operating Expenses | (7) | (0) | (4,575) | (294) | - |
Conversion Effect (BT 64) | 1 | (3) | 793 | (2,224) | 135.7% |
Net other Non Operating Income (Expenses) | (2) | (3) | (1,491) | (2,101) | 29.0% |
Price Level Restatement | - | - | - | - | |
Foreign Exchange Effect | - | - | - | - | |
Net of Monetary Exposure | - | - | - | - | |
Positive Goodwill Amortization | - | - | - | - | |
Non Operating Income | 2 | (1) | 1,452 | (533) | - |
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 74 | 9 | 47,321 | 5,478 | - |
Extraordinary Items | - | - | - | - | |
Income Tax | (32) | (11) | (20,271) | (6,952) | (191.6%) |
Minority Interest | - | - | - | - | |
Negative Goodwill Amortization | - | - | - | - | |
NET INCOME | 43 | (2) | 27,049 | (1,475) | - |
Net Income
Codensa registered a Net Income of $27,049 million for the first half of 2004, $28,524 million higher than the previous year. This result is mainly due to:
Operating Income
Higher Operating Income of $39,858 million, primarily explained by higher energy sales of $22,592 due to increase in tariff and also higher other operating revenues of $22,502 million related with revenues proceeding from STR (Transmission System) previously accounted in revenues net from cost.
Non Operating Income
Higher Non-Operating Income of $1,985 million, primarily explained by higher net financial income of $1,375 million and lower net other non operating expenses of $610 million, basically related to the positive conversion effect registered as a result of the application of Technical Bulletin N°64 of Chilean Accounting Principles of $3,017 million, compensated by higher other non operating expenses of $4,281 million.
Other
Tax loss increase by $13,319 million compared to the previous year.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 41 |
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Additional Information
Table 23
Codensa | 6M 04 | 6M 03 | Chg % |
Customers (Th) | 1,993 | 1,940 | 2.7% |
GWh Sold | 4,754 | 4,512 | 5.4% |
Clients/Employe | 2,350 | 2,307 | 1.9% |
Energy Losses GWh (TTM) | 1,045 | 1,047 | 0.2% |
Energy Losses % (TTM) | 9.9% | 10.3% | 0.4% |
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www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 42 |
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Edelnor
Table 24
Million US$ | Million Ch$ | ||||
6M 04 | 6M 03 | 6M 04 | 6M 03 | Chg% | |
Revenues from Sales | 148 | 160 | 94,136 | 101,747 | (7.5%) |
Other Operating Revenues | 5 | 5 | 3,056 | 3,215 | (4.9%) |
Operating Revenues | 153 | 165 | 97,191 | 104,962 | (7.4%) |
Energy Purchases | (96) | (102) | (61,272) | (65,164) | 6.0% |
Other Operating Cost | (19) | (21) | (11,946) | (13,087) | 8.7% |
Operating Costs | (115) | (123) | (73,218) | (78,250) | 6.4% |
Selling and Administrative Expenses | (14) | (15) | (8,805) | (9,553) | 7.8% |
Operating Income | 24 | 27 | 15,168 | 17,159 | (11.6%) |
Interest Income | 2 | 2 | 969 | 1,096 | (11.6%) |
Interest Expenses | (6) | (5) | (3,896) | (3,352) | (16.2%) |
Net Financial Income (Expenses) | (5) | (4) | (2,926) | (2,256) | (29.7%) |
Equity Gains from Related Company | - | - | - | - | |
Equity Losses from Related Company | - | - | - | - | |
Net Income from Related Companies | - | - | - | - | |
Other Non Operating Income | 2 | 3 | 1,451 | 1,965 | (26.2%) |
Other Non Operating Expenses | (0) | (2) | (251) | (1,150) | 78.2% |
Conversion Effect (BT 64) | 1 | (3) | 491 | (1,611) | 130.5% |
Net other Non Operating Income (Expenses) | 3 | (1) | 1,691 | (796) | - |
Price Level Restatement | - | - | - | - | |
Foreign Exchange Effect | - | - | - | - | |
Net of Monetary Exposure | - | - | - | - | |
Positive Goodwill Amortization | - | - | - | - | |
Non Operating Income | (2) | (5) | (1,235) | (3,051) | 59.5% |
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | 22 | 22 | 13,933 | 14,107 | (1.2%) |
Extraordinary Items | - | - | - | - | |
Income Tax | (17) | (8) | (11,082) | (5,064) | (118.8%) |
Minority Interest | - | - | - | - | |
Negative Goodwill Amortization | - | - | - | - | |
NET INCOME | 4 | 14 | 2,851 | 9,043 | (68.5%) |
Net Income
Edelnor registered a Net Income of $2,851 million for the first half of 2004, $6,192 million lower than the previous year. This result is mainly due to:
Operating Income
Lower Operating Income of $1,991 million, related to lower operating revenues of $7,611 million, compensated by lower energy purchases of $3,892 million, lower other operating cost of $1,141 million and lower selling and administrative expenses of $748 million. Offset by;
Non Operating Income
Lower Non-Operating Loss of $1,816 million, due to lower other non operating expenses of $899 million and the positive BT 64 conversion effect of $491 million compared to the $1,611 million negative BT 64 conversion effect in the same period of 2003.
Other
Higher Tax Loss of $6,018, from $11,082 million to $5,064 registered on the first half of 2003.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 43 |
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Additional Information
Table 25
Edelnor | 6M 04 | 6M 03 | Chg % |
Customers (Th) | 903 | 886 | 1.9% |
GWh Sold | 2,097 | 1,977 | 6.1% |
Clients/Employe | 1,654 | 1,574 | 5.1% |
Energy Losses GWh (TTM) | 373 | 360 | (3.6%) |
Energy Losses % (TTM) | 8.4% | 8.4% | 0.0% |
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![](https://capedge.com/proxy/6-K/0001292814-04-000182/graf011.gif)
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 44 |
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Edesur
Table 26
Million US$ | Million Ch$ | ||||
6M 04 | 6M 03 | 6M 04 | 6M 03 | Chg% | |
Revenues from Sales | 172 | 152 | 109,417 | 96,958 | 12.8% |
Other Operating Revenues | 12 | 12 | 7,639 | 7,881 | (3.1%) |
Operating Revenues | 184 | 165 | 117,056 | 104,839 | 11.7% |
Energy Purchases | (88) | (71) | (56,282) | (44,890) | (25.4%) |
Other Operating Cost | (68) | (75) | (43,539) | (47,906) | 9.1% |
Operating Costs | (157) | (146) | (99,821) | (92,796) | (7.6%) |
Selling and Administrative Expenses | (24) | (25) | (15,140) | (15,909) | 4.8% |
Operating Income | 3 | (6) | 2,095 | (3,866) | 154.2% |
Interest Income | 2 | 7 | 1,450 | 4,656 | (68.9%) |
Interest Expenses | (14) | (12) | (9,005) | (7,429) | (21.2%) |
Net Financial Income (Expenses) | (12) | (4) | (7,555) | (2,772) | (172.5%) |
Equity Gains from Related Company | 0 | 0 | 3 | 28 | (88.1%) |
Equity Losses from Related Company | - | - | - | - | |
Net Income from Related Companies | 0 | 0 | 3 | 28 | (88.1%) |
Other Non Operating Income | 13 | 0 | 8,447 | 223 | - |
Other Non Operating Expenses | (8) | (6) | (5,011) | (3,803) | (31.8%) |
Conversion Effect (BT 64) | 2 | (1) | 1,448 | (461) | - |
Net other Non Operating Income (Expenses) | 8 | (6) | 4,884 | (4,041) | - |
Price Level Restatement | - | - | - | - | |
Foreign Exchange Effect | - | - | - | - | |
Net of Monetary Exposure | - | - | - | - | |
Positive Goodwill Amortization | - | - | - | - | |
Non Operating Income | (4) | (11) | (2,667) | (6,786) | 60.7% |
Net Income b. Taxes, Min Int and Neg Goodwill Amort. | (1) | (17) | (572) | (10,652) | 94.6% |
Extraordinary Items | - | - | - | - | |
Income Tax | (12) | (21) | (7,611) | (13,323) | 42.9% |
Minority Interest | - | - | - | - | |
Negative Goodwill Amortization | - | - | - | - | |
NET INCOME | (13) | (38) | (8,183) | (23,975) | 65.9% |
Net Income
Edesur registered a Net Loss of $8,183 million for the first half of 2004, $15,792 million lower loss than the previous year. This result is mainly due to:
Operating Income
Higher Operating Income of $5,961 million, mainly due to higher operating revenues by $12,217 million related with the improvement in energy demand observed in Argentina. Physical sales rose from 6,231 GWh to 6,726 GWh in the same period of 2004. Compensated by $7,025 million higher operating costs related to higher energy purchases.
Non Operating Income
Lower Non-Operating Losses of $4,119 million, mainly explained by higher other non operating income of $8,925 million and $987 million positive conversion effect registered as a result of the application of Technical Bulletin N°64 of Chilean Accounting Principles, partially compensated by higher net financial expenses of $4,783 million.
Other
Tax loss decrease by $5,712 million compared to the previous year.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 45 |
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Additional Information
Table 27
Edesur | 6M 04 | 6M 03 | Chg % |
Customers (Th) | 2,128 | 2,101 | 1.3% |
GWh Sold | 6,726 | 6,231 | 7.9% |
Clients/Employe | 939 | 935 | 0.4% |
Energy Losses GWh (TTM) | 1,754 | 1,653 | (6.1%) |
Energy Losses % (TTM) | 11.8% | 11.8% | 0.0% |
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www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 46 |
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Parent Company Income Statement
Under Chilean GAAP, Million Ch$
Table 28
Million Ch$ | 6M 04 | 6M 03 | Var 04-03 | Chg % |
Operating Revenues | 2,183 | 2,203 | (20) | (0.9%) |
Operating Costs | (561) | (570) | 9 | 1.6% |
Operating Margin | 1,622 | 1,633 | (11) | (0.7%) |
Selling and Administrative Expenses | (7,322) | (7,442) | 120 | 1.6% |
Operating Income | (5,700) | (5,809) | 109 | 1.9% |
Interest Income | 18,821 | 20,385 | (1,564) | (7.7%) |
Interest Expense | (40,704) | (62,238) | 21,534 | 34.6% |
Net Financial Income (Expenses) | (21,883) | (41,853) | 19,970 | 47.7% |
Equity Gains from Related Companies | 75,070 | 47,240 | 27,830 | 58.9% |
Equity Losses from Related Companies | (2,741) | (32,251) | 29,510 | 91.5% |
Net Income from Related Companies | 72,329 | 14,988 | 57,341 | - |
Other Non Operating Income | 4,404 | 96,198 | (91,794) | (95.4%) |
Other Non Operating Expenses | (8,155) | (14,517) | 6,362 | 43.8% |
Net other Non Operating Income (Expense) | (3,751) | 81,681 | (85,432) | (104.6%) |
Price Level Restatement | (40) | (9,358) | 9,318 | 99.6% |
Foreign Exchange Effect | 161 | 12,227 | (12,066) | (98.7%) |
Net of Monetary Exposure | 120 | 2,869 | (2,749) | (95.8%) |
Positive Goodwill Amortization | (25,138) | (25,124) | (14) | (0.1%) |
Non Operating Income | 21,677 | 32,561 | (10,884) | (33.4%) |
Net Inc b. Taxes, Min Int and Neg Goodwill Amort | 15,978 | 26,752 | (10,774) | (40.3%) |
Income Tax | (2,225) | (8,375) | 6,150 | 73.4% |
Negative Goodwill Amortization | 22 | 21,747 | (21,725) | (99.9%) |
NET INCOME | 13,774 | 40,124 | (26,350) | (65.7%) |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 47 |
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Under Chilean GAAP, Thousand US$
Table 28.1
Th. US$ | 6M 04 | 6M 03 | Var 04-03 | Chg % |
Operating Revenues | 3,430 | 3,462 | (32) | (0.9%) |
Operating Costs | (881) | (896) | 15 | 1.6% |
Operating Margin | 2,549 | 2,566 | (17) | (0.7%) |
Selling and Administrative Expenses | (11,507) | (11,696) | 189 | 1.6% |
Operating Income | (8,958) | (9,130) | 172 | 1.9% |
Interest Income | 29,578 | 32,038 | (2,460) | (7.7%) |
Interest Expense | (63,969) | (97,813) | 33,844 | 34.6% |
Net Financial Income (Expenses) | (34,391) | (65,775) | 31,384 | 47.7% |
Equity Gains from Related Companies | 117,979 | 74,241 | 43,738 | 58.9% |
Equity Losses from Related Companies | (4,308) | (50,686) | 46,378 | 91.5% |
Net Income from Related Companies | 113,671 | 23,555 | 90,116 | - |
Other Non Operating Income | 6,922 | 151,184 | (144,262) | (95.4%) |
Other Non Operating Expenses | (12,817) | (22,815) | 9,998 | 43.8% |
Net other Non Operating Income (Expense) | (5,895) | 128,369 | (134,264) | (104.6%) |
Price Level Restatement | (63) | (14,706) | 14,643 | 99.6% |
Foreign Exchange Effect | 252 | 19,215 | (18,963) | (98.7%) |
Net of Monetary Exposure | 189 | 4,509 | (4,320) | (95.8%) |
Positive Goodwill Amortization | (39,506) | (39,485) | (21) | (0.1%) |
Non Operating Income | 34,068 | 51,173 | (17,105) | (33.4%) |
Net Inc b. Taxes, Min Int and Neg Goodwill Amort | 25,110 | 42,043 | (16,933) | (40.3%) |
Income Tax | (3,497) | (13,162) | 9,665 | 73.4% |
Negative Goodwill Amortization | 34 | 34,177 | (34,143) | (99.9%) |
NET INCOME | 21,647 | 63,058 | (41,411) | (65.7%) |
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 48 |
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Partially Consolidated Income Statement
Parent Company Consolidated with Enersis Internacional First Half 2004 Earnings Report
Under Chilean GAAP, Million Ch$
Table 29
2Q 04 | 2Q 03 | Var % | (in million Ch$ of 1H04) | 1H 04 | 1H 03 | Var % | |
808 | 819 | (1.3%) | Gross Operating Margin | 1,622 | 1,633 | (0.7%) | |
(3,790) | (3,919) | 3.3% | S&A Expenses | (7,322) | (7,442) | 1.6% | |
(2,981) | (3,100) | 3.8% | Operating Income | (5,700) | (5,809) | 1.9% | |
14,884 | 14,333 | 3.8% | Endesa | 19,765 | 28,905 | (31.6%) | |
10,495 | 43,605 | (75.9%) | Chilectra | 22,882 | 55,635 | (58.9%) | |
- | (2,824) | (100.0%) | Río Maipo | - | - | NA | |
(3,608) | (5,522) | 34.7% | Edesur | (5,303) | (15,525) | 65.8% | |
831 | 2,479 | (66.5%) | Edelnor | 1,443 | 4,088 | (64.7%) | |
4,164 | (40,289) | 110.3% | Cerj | 363 | (57,409) | 100.6% | |
(210) | 121 | (272.6%) | Coelce | (460) | (1,739) | 73.5% | |
2,053 | (835) | 345.8% | Codensa | 4,985 | (1,868) | 366.9% | |
1,080 | 1,274 | (15.3%) | CAM LTDA | 1,619 | 2,410 | (32.8%) | |
(31) | 278 | (111.0%) | Inm Manso de Velasco | 1,534 | 416 | 269.2% | |
871 | 1,307 | (33.4%) | Synapsis | 1,925 | 2,365 | (18.6%) | |
3,086 | - | NA | CGTF | 5,563 | - | NA | |
(209) | (105) | (100.4%) | Other | (209) | (121) | (73.5%) | |
33,406 | 13,822 | 141.7% | Net Income from Related Companies | 54,106 | 17,157 | 215.4% | |
11,935 | 14,286 | (16.5%) | Interest Income | 25,384 | 29,587 | (14.2%) | |
(19,062) | (30,257) | 37.0% | Interest Expense | (40,704) | (62,267) | 34.6% | |
(7,127) | (15,970) | 55.4% | Net Financial Income (Expenses) | (15,319) | (32,681) | 53.1% | |
2,230 | 93,955 | (97.6%) | Other Non Operating Income | 4,412 | 96,207 | (95.4%) | |
(7,120) | (11,015) | 35.4% | Other Non Operating Expenses | (8,971) | (14,519) | 38.2% | |
(4,890) | 82,940 | (105.9%) | Net other Non Operating Income (Expenses) | (4,559) | 81,688 | (105.6%) | |
(605) | (12,430) | 95.1% | Price Level Restatement | 4 | (10,218) | 100.0% | |
2,768 | 3,306 | (16.3%) | Foreign Exchange Effect | 12,257 | 1,739 | 604.7% | |
2,163 | (9,124) | 123.7% | Net Monetary Exposure | 12,261 | (8,479) | 244.6% | |
(12,571) | (12,400) | (1.4%) | Positive Goodwill Amortization | (25,138) | (25,124) | (0.1%) | |
10,980 | 59,267 | (81.5%) | Non Operating Income | 21,351 | 32,561 | (34.4%) | |
7,999 | 56,167 | (85.8%) | Net Income before (1), (2) & (3) | 15,651 | 26,752 | (41.5%) | |
(4,226) | (11,194) | 62.3% | Income Tax (1) | (2,225) | (8,375) | 73.4% | |
257 | 21,735 | (98.8%) | Negative Goodwill Amortization (2) | 348 | 21,747 | (98.4%) | |
- | - | NA | Minority Interest (3) | - | - | NA | |
4,031 | 66,707 | (94.0%) | NET INCOME | 13,774 | 40,124 | (65.7%) | |
0.12 | 2.19 | EPS (Ch$) | 0.42 | 1.32 | |||
0.01 | 0.17 | EPADS (US$) | 0.03 | 0.10 | |||
32,651,166 | 30,404,284 | Common Shares Outstanding (Th) | 32,651,166 | 30,404,284 | |||
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 49 |
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Under Chilean GAAP, Thousand US$
Table 29.1
2Q 04 | 2Q 03 | Var % | (in thousand US$ of 1H04) | 1H 04 | 1H 03 | Var % | |
1,270 | 1,287 | (1.3%) | Gross Operating Margin | 2,549 | 2,566 | (0.7%) | |
(5,956) | (6,160) | 3.3% | S&A Expenses | (11,507) | (11,696) | 1.6% | |
(4,686) | (4,872) | 3.8% | Operating Income | (8,958) | (9,130) | 1.9% | |
23,391 | 22,526 | 3.8% | Endesa | 31,062 | 45,427 | (31.6%) | |
16,494 | 68,529 | (75.9%) | Chilectra | 35,961 | 87,435 | (58.9%) | |
- | (4,439) | (100.0%) | Río Maipo | - | - | NA | |
(5,670) | (8,679) | 34.7% | Edesur | (8,334) | (24,398) | 65.8% | |
1,307 | 3,895 | (66.5%) | Edelnor | 2,268 | 6,425 | (64.7%) | |
6,544 | (63,318) | 110.3% | Cerj | 571 | (90,223) | 100.6% | |
(329) | 191 | (272.6%) | Coelce | (723) | (2,734) | 73.5% | |
3,226 | (1,312) | 345.8% | Codensa | 7,834 | (2,936) | 366.9% | |
1,697 | 2,002 | (15.3%) | CAM LTDA | 2,544 | 3,787 | (32.8%) | |
(48) | 436 | (111.0%) | Inm Manso de Velasco | 2,411 | 653 | 269.2% | |
1,369 | 2,055 | (33.4%) | Synapsis | 3,025 | 3,716 | (18.6%) | |
4,849 | - | NA | CGTF | 8,742 | - | NA | |
(329) | (164) | (100.4%) | Others | (329) | (190) | (73.5%) | |
52,500 | 21,722 | 141.7% | Net Income from Related Companies | 85,032 | 26,964 | 215.4% | |
18,756 | 22,452 | (16.5%) | Interest Income | 39,893 | 46,498 | (14.2%) | |
(29,958) | (47,551) | 37.0% | Interest Expense | (63,969) | (97,859) | 34.6% | |
(11,201) | (25,099) | 55.4% | Net Financial Income (Expenses) | (24,076) | (51,361) | 53.1% | |
3,504 | 147,659 | (97.6%) | Other Non Operating Income | 6,933 | 151,197 | (95.4%) | |
(11,190) | (17,311) | 35.4% | Other Non Operating Expenses | (14,098) | (22,818) | 38.2% | |
(7,686) | 130,347 | (105.9%) | Net other Non Operating Income (Expenses) | (7,165) | 128,380 | (105.6%) | |
(951) | (19,535) | 95.1% | Price Level Restatement | 6 | (16,059) | 100.0% | |
4,351 | 5,195 | (16.3%) | Foreign Exchange Effect | 19,263 | 2,733 | 604.7% | |
3,400 | (14,339) | 123.7% | Net Monetary Exposure | 19,269 | (13,325) | 244.6% | |
(19,756) | (19,488) | (1.4%) | Positive Goodwill Amortization | (39,506) | (39,485) | (0.1%) | |
17,256 | 93,143 | (81.5%) | Non Operating Income | 33,554 | 51,173 | (34.4%) | |
12,571 | 88,271 | (85.8%) | Net Income before (1), (2) & (3) | 24,597 | 42,042 | (41.5%) | |
(6,641) | (17,592) | 62.3% | Income Tax (1) | (3,497) | (13,162) | 73.4% | |
405 | 34,158 | (98.8%) | Negative Goodwill Amortization (2) | 547 | 34,177 | (98.4%) | |
- | - | NA | Minority Interest (3) | - | - | NA | |
6,335 | 104,836 | (94.0%) | NET INCOME | 21,647 | 63,058 | (65.7%) | |
0.12 | 2.19 | EPS (Ch$) | 0.42 | 1.32 | |||
0.01 | 0.17 | EPADS (US$) | 0.03 | 0.10 | |||
32,651,166 | 30,404,284 | Common Shares Outstanding (Th) | 32,651,166 | 30,404,284 | |||
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 50 |
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Ownership of the Company as of June 30, 2004
TOTAL SHAREHOLDERS: 10,079
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Conference Call Invitation
Enersis is pleased to inform you that it will hold a conference call to review its results for the period, on Thursday, July 29, 2004, at 1:00 PM (New York time). To participate, please dial +1 (617) 614-2711 or +1 (800) 659-1966 (toll free USA), approximately 10 minutes prior to the scheduled start time, Passcode ID: 43767066.
The phone replay will be available since July 29, until August 5, dialing +1 (617) 801-6888 or 1+ (888) 286-8010 (toll free USA) Passcode ID: 31907647.
To access the call online, or to access the replay, go to: http://www.enersis.com Investor Relations (please note that this is a listen only mode).
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 51 |
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Contact Information
For further information, please contact Enersis:
Susana Rey
Head of Investor Relations
srm@e.enersis.cl
56 (2) 353 4554
Pablo Lanyi-Grunfeldt Investor Relations Engineer pll@e.enersis.cl 56 (2) 353 4552 | Francisco Luco Investor Relations Engineer fjlv@e.enersis.cl 56 (2) 353 4555 | Cristián Palacios Investor Relations Engineer cpg1@e.enersis.cl 56 (2) 353 4492 | Carmen Poblete Investor Relations Engineer cpt@e.enersis.cl 56 (2) 353 4447 |
Mariluz Muñoz
Investor Relations
Assistant
mlmr@e.enersis.cl
56 (2) 353 4682
Disclaimer
This Press Release contains statements that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this announcement and include statements regarding the intent, belief or current expectations of Enersis and its management with respect to, among other things: (1) Enersis’ business plans; (2) Enersis’ cost-reduction plans; (3) trends affecting Enersis’ financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile or elsewhere; and (5) the future effect of any changes in the laws and regulations applicable to Enersis’ or its affiliates. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors. These factors include a decline in the equity capital markets of the United States or Chile, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Enersis’ Annual Report on Form 20-F. Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Enersis undertakes no obligation to release publicly the result of any revisions to these forward-looking statements.
www.enersis.cl | Santa Rosa 76, Santiago, CHILE Phone: 56 (2) 353 4682 | Pg. 52 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
ENERSIS S.A. | |||||||
Date: August 3, 2004 | By: | /s/ Mario Valcarce | |||||
Name: Mario Valcarce | |||||||
Title: Chief Executive Officer |
Disclaimer
This Press Release contains statements that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this announcement and include statements regarding the intent, belief or current expectations of Enersis and its management with respect to, among other things: (1) Enersis’ business plans; (2) Enersis’ cost-reduction plans; (3) trends affecting Enersis’ financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile or elsewhere; and (5) the future effect of any changes in the laws and regulations applicable to Enersis’ or its affiliates. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors. These factors include a decline in the equity capital markets of the United States or Chile, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Enersis’ Annual Report on Form 20-F. Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Enersis undertakes no obligation to release publicly the result of any revisions to these forward-looking statements.